From Nasdaq: 2025-05-23 05:30:00

Navitas Semiconductor (NASDAQ: NVTS) stock surged over 160% after Nvidia (NASDAQ: NVDA) chose them to develop high-voltage power systems for AI data centers. With 12.8% of shares sold short and a market cap of $886 million, excitement and skepticism among investors are high.

Nvidia’s partnership with Navitas signifies a major shift in AI infrastructure. The collaboration aims to revolutionize power systems to support GPUs like the Rubin Ultra, improving power efficiency by 5%, cutting copper use by 45%, and reducing maintenance costs by up to 70%.

Navitas’ GaN and SiC semiconductors play a crucial role in enabling the transition to 800V power systems. Their technology offers high efficiency and performance, positioning them as a key player in the future of AI infrastructure.

Despite the stock’s rapid rise, Navitas’ financials remain a concern, with a net loss equal to revenue in 2024. The company’s path to profitability hinges on securing design wins and scaling revenue, making it a high-risk investment.

Navitas’ recent collaboration with Nvidia presents a significant growth opportunity, but caution is advised due to the company’s financial situation. While the stock may experience volatility, the partnership with Nvidia could lead to long-term value creation in the AI infrastructure sector.



Read more at Nasdaq: Is Navitas Semiconductor Stock a buy After Nvidia Enters the Room?