Navitas Semiconductor (NVTS) Surges 22.9% on AI Partnership and Manufacturing Shifts – Is the Momentum Sustainable?

Summary
• Navitas Semiconductor (NVTS) surges 22.9% intraday, hitting a 52-week high of $10.41
• Partnership with NVIDIA to develop 800V HVDC architecture for AI data centers drives optimism
• 8-inch wafer manufacturing shift and $100M capital raise signal production scalability

Navitas Semiconductor’s stock has erupted 22.9% in a single session, fueled by a strategic NVIDIA collaboration and manufacturing upgrades. The surge follows a 33.4% monthly gain and a 135% year-to-date rally, with the stock trading at $10.1152 after a volatile intraday range of $8.50 to $10.41. Analysts debate whether the momentum reflects undervaluation or overbought conditions, as the stock’s 223% total shareholder return over the past year highlights its speculative appeal.

NVIDIA Partnership and 8-Inch Wafer Shift Drive Navitas' Surge
Navitas’ 22.9% intraday surge is directly tied to its partnership with NVIDIA to develop 800V HVDC architecture for AI data centers, announced in May 2025. This collaboration positions Navitas at the forefront of high-voltage power solutions for AI infrastructure, a sector projected to grow exponentially. Additionally, Navitas’ shift to 8-inch wafer manufacturing, announced in July 2025, reduces production costs and accelerates scalability. The company’s recent $100M capital raise and strategic manufacturing partnership with PSMC further validate its ability to meet surging demand. These catalysts have reignited investor confidence, despite a consensus fair value of $6.74 suggesting the stock is 22% overvalued.

Semiconductor Sector Rally: Navitas Outpaces ON Semiconductor's 10.1% Gains
The semiconductor sector has rallied on AI-driven demand, with ON Semiconductor (ON) surging 10.1% intraday. Navitas’ 22.9% move far outpaces sector peers, reflecting its niche in gallium nitride (GaN) and silicon carbide (SiC) technologies. While ON Semiconductor focuses on broader analog and power solutions, Navitas’ specialization in AI data center power systems has created a unique value proposition. The sector’s 10.098% average intraday gain underscores the tailwinds from AI infrastructure spending, but Navitas’ partnership with NVIDIA and manufacturing upgrades have amplified its momentum.

Options Playbook: NVTS20251017C10 and NVTS20251024C9.5 Lead the Charge
• MACD: 0.446 (bullish divergence), Signal Line: 0.338, Histogram: 0.108 (positive momentum)
• RSI: 63.18 (neutral to overbought), Bollinger Bands: $5.76–$8.60 (current price above upper band)
• 200D MA: $4.629 (far below current price), 30D MA: $6.713 (support level)

Navitas’ technicals suggest a continuation of the bullish trend, with key resistance at $10.41 (52-week high) and support at $8.60 (Bollinger upper band). The stock’s 143.67% implied volatility and 57.8% turnover rate indicate high liquidity and speculative fervor. For options, NVTS20251017C10 (call) and NVTS20251024C9.5 (call) stand out:

• NVTS20251017C10 (Call, $10 strike, 10/17 expiry):
- IV: 143.67% (high volatility)
- Delta: 0.5698 (moderate sensitivity)
- Theta: -0.1073 (rapid time decay)
- Gamma: 0.2320 (high sensitivity to price changes)
- Turnover: 1,378,569 (liquid)
- Leverage Ratio: 13.53% (moderate leverage)
- Price Change: +226.09% (strong momentum)
This contract offers high gamma and liquidity, ideal for a short-term bullish bet. A 5% upside from $10.1152 to $10.62 would yield a payoff of $0.62 per share, or 6.2% on the strike.

• NVTS20251024C9.5 (Call, $9.5 strike, 10/24 expiry):
- IV: 115.19% (moderate volatility)
- Delta: 0.6655 (high sensitivity)
- Theta: -0.0509 (slower decay)
- Gamma: 0.1717 (moderate sensitivity)
- Turnover: 66,794 (liquid)
- Leverage Ratio: 8.53% (lower leverage)
- Price Change: +170.45% (strong momentum)
This contract balances delta and theta, offering a safer play for a continuation of the rally. A 5% upside to $10.62 would yield a $1.12 payoff, or 11.7% on the strike.

Aggressive bulls should prioritize NVTS20251017C10 for high gamma exposure, while NVTS20251024C9.5 offers a more conservative leveraged play. Watch for a break above $10.41 to confirm the trend.

Backtest Navitas Stock Performance
The back-test is complete. Below is a concise performance briefing, followed by an interactive module where you can explore every detail of the trade list and equity curve.Key results (2022-01-01 ~ 2025-10-13)• Total return: 29.66 % • Annualized return: 8.02 % • Max-drawdown: -12.92 % • Sharpe ratio: 0.53 • Average trade: 0.86 % (wins 3.79 %, losses -3.54 %)Assumptions auto-filled1. Oversold threshold set to RSI14 < 30 – the standard definition for “oversold”.2. Entry/exit prices use the daily close.3. Position is force-closed after one trading day via the max_holding_days risk-control flag.You can review the full statistics and trade-by-trade breakdown in the module below.Open the module to inspect the trade list, equity line, and additional metrics.

Bullish Momentum Unlikely to Subside – Position for AI-Driven Growth
Navitas’ 22.9% surge is a testament to its strategic positioning in AI infrastructure and manufacturing scalability. While the stock trades 22% above its fair value of $6.74, the partnership with NVIDIA and 8-inch wafer shift justify the premium. Technicals and options data suggest the rally is far from over, with key resistance at $10.41 and support at $8.60. Position for a continuation above $10.41, and monitor ON Semiconductor’s 10.1% gain for sector validation.