Navitas Semiconductor (NASDAQ: NVTS) stock surged by 23.2% in September, with a 126% increase for the year. The company has never turned a profit but is expected to play a key role in new data centers. Analysts predict a significant revenue increase in 2027, driving long-term growth prospects.

Despite its lack of profitability, Navitas Semiconductor is set to benefit from a new generation of 800V high voltage data centers launching in 2027. These centers, driven by Nvidia and partners like Navitas, offer efficiency improvements for hyperscalers. Investor optimism is high, with expectations of ballooning revenues and profits.

Investors are optimistic about Navitas Semiconductor’s long-term growth potential, as demand for data centers continues to rise. Recent announcements of significant investments in data centers by companies like OpenAI and Oracle further fuel this optimism. While Navitas may not be profitable now, its role in data center demand could lead to substantial growth.

Read more at Nasdaq: Here’s Why Shares in Navitas Soared in September