Navitas Semiconductor (NVTS) Soars 33% on continued AI Momentum

by MarketNewsData

Stock Action:
Navitas Semiconductor (NVTS) surged more than 33% to trade around $9.09 on Monday, continuing its strong upward move that began earlier this year. The stock gained over $2.30 intraday, with volume exceeding 60 million shares, far above average daily activity.

What’s Driving the Move:

  • The rally appears tied to renewed bullish sentiment in the AI space, led by gains in Nvidia (NVDA), a key partner for Navitas.
  • Navitas previously announced a collaboration with Nvidia on next-gen power architectures for AI servers and data centers. That deal, first disclosed in June, remains a point of optimism for investors seeking exposure to AI hardware infrastructure.

Background on the Nvidia Deal:

  • The partnership involves Navitas supporting Nvidia’s 800-volt power architecture for AI accelerators, leveraging its gallium nitride (GaN) and silicon carbide (SiC) technologies.
  • That initial announcement triggered a sharp move in early June and continues to serve as a tailwind for the stock as investors look for AI-adjacent plays.

Recent Financials:

  • Q1 2025 revenue came in at $14 million, down from $23.2 million the prior year.
  • The company reported a GAAP net loss of $25 million, with a non-GAAP loss of $11.8 million.
  • Gross margins were around 38.5%, with Q2 revenue guidance reaffirmed between $14–15 million.

Valuation & Sentiment:

  • The stock trades at a high price-to-sales multiple (around 15x), reflecting significant expectations despite current financial losses.
  • While the rally is largely sentiment-driven, it’s being supported by strong momentum in AI and broader tech.

What’s Next:
Navitas is expected to report its Q2 results in early August. That report will be a key test for the company’s ability to translate AI enthusiasm into meaningful growth and improve its financial trajectory.

Takeaway:
Navitas is riding the AI wave thanks to its Nvidia collaboration, but fundamentals remain a work in progress. Investors appear focused on the future potential of its power technology rather than near-term profitability.

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