From Nasdaq: 2025-05-27 13:56:00

Shares of Navitas Semiconductor (NASDAQ: NVTS) surged up to 70.7% before settling at a 40.9% gain on Tuesday, following a game-changing deal with Nvidia (NASDAQ: NVDA) last Wednesday.

Navitas announced an equity sale aiming to raise $50 million at higher prices, leading to another increase in stock value, despite the norm of stock decline after an equity raise.

The company seemed speculative with small revenue and operating losses, but last week’s announcement of GaN and SiC chips going into Nvidia’s upcoming 800V DC architecture changed its outlook in the chip industry.

Navitas announced a new ATM offering to sell shares in the open market, raising cash at attractive prices to extend its financial runway.

Investors applauded Navitas’ move to raise cash through equity sales, despite the dilution of shareholders, as the company only had $75 million in cash by the end of the last quarter.

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Read more at Nasdaq: Why Navitas Semiconductor Skyrocketed Yet Again Today