Navitas Semiconductor Shares Soar 23.2% in September on Nvidia Partnership

Navitas Semiconductor's stock soared 23.2% in September, up 126% for the year, due to its partnership with Nvidia and expected explosive growth in the new generation of data centers. Despite never having generated operating income, analysts predict a nearly 79% year-over-year increase in revenue in 2027, driven by the launch of 800V HVDC data centers.

Navitas Semiconductor Corporation (NASDAQ: NVTS) experienced a significant surge in its stock price in September, with shares rising by 23.2% and marking a 126% increase for the year. This upward trajectory can be attributed to the company's strategic partnership with Nvidia and the anticipated explosive growth in the next generation of data centers Here's Why Shares in Navitas Soared in September^[1].

Navitas Semiconductor has never generated operating income and is not expected to do so in the near term. However, analysts project a nearly 79% year-over-year increase in revenue in 2027, driven by the launch of 800V high voltage direct current (HVDC) data centers. These new data centers are set to enhance efficiency and reduce maintenance costs, addressing the surge in AI-driven demand Here's Why Shares in Navitas Soared in September^[1].

The partnership with Nvidia, a leader in AI technology, highlights Navitas' innovative gallium nitride (GaN) technology. This technology is crucial for power conversion from the grid to 800V DC in data centers and then to the lower voltages required to power IT racks. The collaboration underscores Navitas' potential to play a pivotal role in the future of data centers Navitas Semiconductor (NVTS) Is Up 6.4% After Announcing Nvidia Partnership and Expanded GaN Collaborations^[2].

Despite the positive outlook, investors should remain cautious. Navitas' revenue has been soft in core markets such as solar and industrial. While the Nvidia partnership is a significant milestone, it does not fully address these short-term challenges. The company's narrative projects $129.8 million in revenue and $18.3 million in earnings by 2028, which requires substantial revenue growth and earnings improvement Navitas Semiconductor (NVTS) Is Up 6.4% After Announcing Nvidia Partnership and Expanded GaN Collaborations^[2].

In conclusion, Navitas Semiconductor's stock performance reflects investor optimism about its role in the growing data center sector. However, the company's path to profitability remains uncertain, and investors should weigh the risks and rewards carefully.