Navitas Semiconductor (NASDAQ: NVTS) stock surged 78.1% last week, reaching a market capitalization of $3.1 billion. The company announced a new partnership with Nvidia for AI computing chips, propelling the stock up 311% year to date. Despite a sales drop, investors anticipate future growth and design wins for Navitas.

Navitas provided GaN and SiC power semiconductors for Nvidia’s data centers, solidifying Nvidia’s leadership in GPUs for AI. Navitas’ recent rally reflects investor confidence in the company’s potential for growth and partnerships in the AI industry. The company’s stock is now up 311% year to date.

With a market capitalization of $3.1 billion, Navitas trades at 64 times this year’s expected sales. The company anticipates $10 million in third-quarter sales, a decline from the previous quarter. Despite this, investors are optimistic about future growth potential and partnerships driving gains for Navitas.

Investors are hopeful for Navitas’ future growth potential despite a recent sales decline. The company’s partnerships and design wins in the AI industry are expected to drive strong gains moving forward. Navitas’ stock has seen significant growth throughout the year, fueled by its collaboration with Nvidia and advancements in AI technology.

Read more at Yahoo Finance: Why Navitas Semiconductor Stock Skyrocketed This Week