Nvidia's AI Partner Navitas Semiconductor Poised for Growth Amid Partnership with Tech Giant

Nvidia's partnership with Navitas Semiconductor, a provider of Gallium Nitride and Silicon Carbide electronic components, could boost Navitas' revenue and help the company break even. However, the stock's recent surge has made it expensive, and investors should be cautious of unrealistic expectations. Navitas' products are just one of many suppliers in Nvidia's 800-volt architecture project, and the company's revenue isn't expected to increase dramatically overnight.

Nvidia's partnership with Navitas Semiconductor, a provider of Gallium Nitride (GaN) and Silicon Carbide (SiC) electronic components, could significantly boost Navitas' revenue and help the company break even. The collaboration is part of Nvidia's ambitious project to develop next-generation 800-volt high voltage direct current (HVDC) data centers, set to launch in 2027 [1].

Navitas' role in this project is crucial. Its silicon carbide chips are essential in converting grid power to 800-volt HVDC at the perimeter, while its gallium nitride chips are used to switch from 800-volt HVDC down to the lower voltages necessary at the IT rack. These advantages make Navitas a key technology partner in Nvidia's new data center technology [1].

The partnership has already had a positive impact on Navitas' stock performance. Shares of Navitas Semiconductor (NASDAQ: NVTS) soared by 83.5% in the first half of 2025, according to data provided by S&P Global Market Intelligence [1]. However, the stock's recent surge has made it expensive, with a forward 12-month price-to-sales (P/S) ratio of 14.5X, significantly higher than the industry average of 7.5X [2].

Investors should be cautious of unrealistic expectations. Navitas' products are just one of many suppliers in Nvidia's 800-volt architecture project, and the company's revenue isn't expected to increase dramatically overnight. While Navitas' innovations in GaN and SiC are positioning it as a key player in next-gen power electronics, the stock's valuation reflects high investor enthusiasm rather than immediate financial performance [2].

Navitas' expanding customer pipeline and new design wins in electric vehicles (EVs), AI data centers, and renewable energy have fueled investor enthusiasm. The company's industry-first bidirectional GaN integrated circuit (IC) launch in the first quarter of 2025 further underscores its innovative capabilities [3].

However, the company's recent stock performance has outpaced its revenue growth. While Navitas' stock has surged 246% over the past three months, revenue growth remains modest. The easy money has been made, and investors should consider the stock's valuation and the company's long-term growth prospects before making a decision [3].

In conclusion, Nvidia's partnership with Navitas Semiconductor presents an opportunity for significant revenue growth and technological advancement. However, investors should approach the stock with caution due to its high valuation and the potential for unrealistic expectations.

References:
[1] https://finance.yahoo.com/news/why-nvidia-partner-navitas-semiconductor-170202994.html
[2] https://www.nasdaq.com/articles/navitas-strengthens-gan-and-sic-footprint-major-alliances
[3] https://www.nasdaq.com/articles/after-246-rally-navitas-semiconductor-buy-or-hold-2025