Navitas Semiconductor Surges 9.2% on Nvidia Partnership Breakthrough – Is This the Catalyst for a New Bull Run?

Summary
• Navitas (NVTS) rockets 9.2% to $10.92, hitting an intraday high of $11.06
• Nvidia collaboration for high-voltage data center architecture drives investor frenzy
• Analysts split between 'Buy' and 'Sell' amid $7 trillion data center market optimism

Navitas Semiconductor’s stock erupted on January 16, 2026, surging 9.2% to $10.92 as it crossed above the 5-day SMA. This surge follows a strategic partnership with Nvidia to develop high-voltage data center architecture, aligning with the projected $7 trillion in global data center capital outlays by 2030. With intraday volatility of 6.40% and a 40.06% two-week rally, the stock’s momentum reflects growing confidence in its AI infrastructure positioning.

Nvidia Partnership Ignites AI Infrastructure Optimism
Navitas’s 9.2% surge is directly tied to its collaboration with Nvidia to develop high-voltage data center architecture, a move poised to capitalize on the $7 trillion global data center market by 2030. This partnership positions Navitas to supply gallium nitride (GaN) and silicon carbide (SiC) solutions for next-generation AI infrastructure, a sector analysts project will see exponential growth. The stock’s breakout above the 5-day SMA and its 40.06% two-week rally underscore investor enthusiasm for Navitas’s pivot toward high-power applications in data centers and EVs, despite short-term analyst skepticism.

Semiconductor Sector Rally: Navitas Outpaces Sector Leader Texas Instruments
The broader semiconductor sector saw mixed performance, with Texas Instruments (TXN) rising 1.54% intraday. However, Navitas’s 9.2% surge far outpaced sector peers, reflecting its unique positioning in AI-driven data center infrastructure. While TXN focuses on analog and embedded processing, Navitas’s partnership with Nvidia targets high-voltage GaN/SiC solutions for AI servers, a niche with higher growth potential. This divergence highlights Navitas’s ability to leverage AI tailwinds despite its smaller scale.

Bullish Setup: NVTS20260123C11 and NVTS20260123P10.5 Lead the Charge
• 200-day average: $6.90 (below current price)
• RSI: 69.60 (overbought)
• MACD: 0.426 (bullish), Signal Line: 0.211
• Bollinger Bands: $11.21 (upper), $6.07 (lower)
• Gamma: 0.272 (high sensitivity to price moves)
• Theta: -0.062 (moderate time decay)

Navitas’s technicals suggest a continuation of its bullish trend, with key resistance at $11.21 (Bollinger Upper Band) and support at $8.64 (20-day MA). The stock’s 69.60 RSI and 0.426 MACD indicate strong momentum, while the 6.40% intraday volatility underscores its high-risk profile. For leveraged exposure, NVTS20260123C11 (call) and NVTS20260123P10.5 (put) stand out:

• NVTS20260123C11 (Call):
- Strike: $11.00
- IV: 90.78% (high)
- Delta: 0.501 (moderate)
- Gamma: 0.272 (high sensitivity)
- Turnover: 166,937
- Leverage: 20.18%
- Payoff (5% upside): $1.47 per contract
- Why: High leverage and gamma make this ideal for a 5% upside move to $11.47.

• NVTS20260123P10.5 (Put):
- Strike: $10.50
- IV: 83.64% (moderate)
- Delta: -0.357 (moderate)
- Gamma: 0.276 (high sensitivity)
- Turnover: 29,303
- Leverage: 31.13%
- Payoff (5% upside): $0.97 per contract
- Why: Balances risk with leverage, ideal for a bullish continuation.

Action: Aggressive bulls should target NVTS20260123C11 if $11.21 breaks, while cautious traders may hedge with NVTS20260123P10.5 for downside protection.

Backtest Navitas Stock Performance
The strategy of buying NVTS after a 9% intraday increase from 2022 to now resulted in poor performance. The strategy's CAGR was -4.61%, with a maximum drawdown of 86.56% and a Sharpe ratio of -0.04, indicating significant risk and losses.

Navitas’s AI Bet: Ride the Wave or Watch the Volatility?
Navitas’s 9.2% surge on Nvidia partnership news signals a pivotal moment in its AI infrastructure journey. While technicals favor a continuation above $11.21 (Bollinger Upper Band), the stock’s 6.40% intraday volatility and 69.60 RSI highlight risks. Sector leader Texas Instruments (TXN) rose 1.54%, underscoring Navitas’s outperformance. Investors should monitor the $8.64 (20-day MA) support and consider NVTS20260123C11 for a bullish breakout or NVTS20260123P10.5 for a balanced approach. Act now: If $11.21 holds, target NVTS20260123C11 for a 5% upside play.