Shares of Navitas Semiconductor are surging due to a deal to provide power management chips to Nvidia’s data centers. Symbotic’s warehouse automation tools are also popular with AI integration. Despite gains, both companies are expected to face significant losses. Navitas stock rose 710% this year, while Symbotic surged 234%. Navitas is developing chips for Nvidia’s new 800-volt power architecture. However, its revenue is low compared to expenses, with analysts predicting a 62% drop in stock price. Symbotic, on the other hand, reported a 26% revenue increase year over year and expects a 17% growth this year. Despite warnings of slowed revenue growth, Symbotic has a backlog of $22.4 billion and potential for steady growth. Analysts believe the stock is overbought, with a consensus price target indicating a 33% loss from recent prices. Navitas Semiconductor’s stock is expected to fall around 62% due to an inflated valuation and uncertainties about providing power to Nvidia’s data centers. Despite potential for growth, the stock is volatile, making it suitable only for high-risk investors.

Read more at Yahoo Finance: These 2 Growth Stocks More Than Tripled This Year, but Wall Street Predicts Trouble Ahead