Why Navitas Semiconductor Rocketed 164% in May
From Yahoo Finance: 2025-06-05 13:33:00
Navitas Semiconductor, a small-cap stock, saw a 164.2% surge in May. The company faced declining revenues and operating losses but was named a partner for Nvidia’s Kyber data center power infrastructure. Navitas used the stock rally to raise cash through equity sales, strengthening its balance sheet.
Navitas, specializing in GaN and SiC chip designs for electric vehicles, struggled with revenue declines. However, a partnership with Nvidia for the Kyber data center infrastructure in 2027 led to a significant stock rally. Navitas capitalized on this by bolstering its balance sheet through stock sales.
Nvidia’s plan for an 800 V HVDC power architecture in 2027 includes Navitas’ SiC chips in data center power rooms. This collaboration caused Navitas’ stock to soar 150% in May. The company’s equity sales aimed to secure funds for future projects until 2027.
Despite the partnership with Nvidia, financial terms weren’t disclosed, and revenue isn’t expected before 2027. Navitas’ recent cash raise will fortify its balance sheet for the Kyber rollout. While the stock surged, investors viewed the capital raise positively.
Navitas Semiconductor’s recent success may be enticing, but financial details remain undisclosed. The company’s focus on the 2027 Kyber rollout led to a significant stock rally. Investors should consider the potential long-term impact of Navitas’ cash raise and partnership with Nvidia.