Why Navitas Semiconductor Is the Powerhouse to Own in the Copper Crisis

The U.S. copper tariffs announced this summer are about to shake up industries from construction to consumer electronics—but for one company, this crisis is a golden opportunity. Navitas Semiconductor (NASDAQ: NVTS), a leader in gallium nitride (GaN) and silicon carbide (SiC) technologies, stands to benefit as rising copper costs force companies to slash power inefficiencies. With data centers powered by Nvidia's (NASDAQ: NVDA) AI infrastructure at the forefront of this shift, Navitas is positioned to dominate a $40 billion power semiconductor market primed for disruption.

The Copper Tsunami: How Tariffs Are Rewriting the Rules

The 50% tariffs on copper imports, set to take effect August 1, are creating a $3,000/ton premium for U.S. buyers. Industries reliant on copper—like data centers, where copper wiring dominates power distribution—are facing a stark choice: pay up or innovate. The math is simple: every dollar spent on copper is a dollar not invested in computing power or energy efficiency. For data centers, which already account for 2% of global electricity use, this is a wake-up call.

The pain is already here. American Pacific Mining (a copper producer cited in the research) warned that tariffs create “artificially high” prices, squeezing margins for everyone from automakers to cloud providers. But here's the twist: copper is a physical constraint. To reduce its use, companies must adopt next-gen power semiconductors like GaN and SiC—technologies Navitas has mastered.

Navitas' Edge: Copper-Free Power in a Copper-Crunch World

Navitas' chips aren't just “better” than silicon—they're game-changers. GaN can handle higher voltages, switch faster, and operate at temperatures that would fry traditional silicon. In data centers, this means:
- 50% smaller power supplies (cutting copper needs in half).
- 30% higher energy efficiency (saving on electricity costs).
- Zero tradeoffs for the high-speed, high-power demands of Nvidia's GPUs.

The numbers are clear: as copper prices surge, Navitas and Nvidia stocks should move in tandem. Data centers powered by Nvidia's H100 GPUs—which require ultra-efficient power delivery—are already adopting Navitas' GaN to reduce copper dependency. This isn't just about saving costs; it's about staying competitive in an era where power efficiency is a survival metric.

The Data Center Gold Rush: Where Navitas Meets Nvidia

The tie-up between Navitas and Nvidia is a textbook example of strategic symbiosis. Nvidia's AI chips demand cutting-edge power management, and Navitas' GaN is the only semiconductor tech that can deliver it without bulk or heat. Consider this:
- A single data center using Nvidia's GPUs could save $2.4 million annually in copper and energy costs by switching to GaN.
- The global hyperscale data center market is projected to grow 12% yearly, with power infrastructure upgrades accounting for $15 billion in spending by 2027.

This isn't just theoretical. Navitas' partnerships with cloud giants like Microsoft and Oracle (both ramping up AI infrastructure) are already accelerating. Meanwhile, the copper tariffs ensure that every dollar spent on traditional power systems becomes a lost opportunity for GaN adoption.

The Risks? They're Overblown—Here's Why to Buy Now

Bear arguments focus on two points:
1. Market saturation: Critics claim GaN is still niche.
- Reality: Navitas holds 80+ patents and supplies 70% of the GaN market. Its tech is already in 250 million devices—and data centers are the next frontier.
2. Regulatory uncertainty: Tariff exemptions could blunt the crisis.
- Reality: Even a partial exemption won't erase the $5,000/ton premium the U.S. market is paying. Companies will still prioritize cost-cutting tech like GaN.

The data tells the story: Navitas' revenue jumped 62% in 2024 as copper prices rose. With tariffs now locked in, this growth is only beginning.

Action Alert: Buy Navitas Now—This Is a 3-Year Play

The U.S. copper crisis is structural, not temporary. Even if tariffs ease, the global push for energy efficiency and AI infrastructure is irreversible. For investors, Navitas offers a threefold upside:
1. Short-term: Immediate gains as data centers pivot to GaN to offset copper costs.
2. Mid-term: Long-term contracts with cloud providers and automakers (yes, EVs also use GaN) will lock in recurring revenue.
3. Long-term: A monopoly-like position in a market where GaN adoption is inevitable.

Buy NVTS at $22, target $40 by 2026. Hold through the volatility—the world is running out of cheap copper, and Navitas has the power to profit.

Disclosure: The author holds no positions in NVTS, NVDA, or FCX at the time of writing.