Navitas Surges on Nvidia Partnership for AI Data Center Power Upgrade
2min read Shares of Navitas Semiconductor (NASDAQ: NVTS) exploded as much as 94% in after-hours trading Wednesday after the company announced a major partnership with Nvidia (NASDAQ: NVDA) to co-develop next-generation 800V HVDC power architecture for AI data centers. Although the stock spiked to $6.57 in the immediate aftermath, it later pulled back toward the $5 level—still marking a significant move for a company with only 117 million shares in the float and a short interest near 20%, making it a prime candidate for short-squeeze radars.
At the core of this excitement is Navitas' integration into Nvidia’s upcoming ‘Kyber’ rack-scale systems, which will power future GPUs such as Rubin Ultra. These systems require increasingly sophisticated and power-dense architectures to meet the skyrocketing demands of AI workloads. Nvidia’s new 800V HVDC approach will replace the aging 54V infrastructure, delivering up to 1 megawatt (MW) of power per rack—significantly improving efficiency, reducing copper requirements by 45%, and slashing maintenance and cooling costs by up to 70%.
Navitas, a pure-play next-generation power semiconductor firm founded in 2014, specializes in gallium nitride (GaN) and silicon carbide (SiC) technologies. Its GaNFast and GeneSiC platforms offer faster switching, higher efficiency, and reduced size compared to legacy silicon chips. These attributes make them ideal for high-performance computing environments, electric vehicles, and renewable energy systems. Notably, Navitas’ GaNSafe™ chips deliver best-in-class protection and efficiency metrics, including short-circuit response time under 350ns and 98% efficiency in a recent 8.5kW AI data center PSU prototype.
The strategic value of the Nvidia partnership cannot be overstated. Nvidia is not only the undisputed leader in AI GPU hardware, but also a key architect of data center design. By embedding Navitas' technology into next-gen power distribution for AI racks, the partnership legitimizes Navitas’ role as a key enabler in the coming wave of hyperscale AI buildouts. This comes at a time when data centers are rapidly scaling toward gigawatt power levels, and traditional architectures are hitting thermal and efficiency walls.
From a financial perspective, Navitas still has work to do. In its most recent fiscal Q1 report, the company posted revenue of $14 million with a gross margin of 38%. This was in line with guidance but reflects ongoing softness in its legacy EV and solar segments due to channel inventory corrections. However, CEO Gene Sheridan was upbeat about the future, pointing to over 75 customer projects in development or production across AI, EV, and new energy verticals. Guidance for Q2 remains cautious at $14-15 million in revenue, though margins are expected to improve slightly.
While NVTS remains a relatively small-cap company, the Nvidia deal may shift how investors view its long-term potential. The market reacted swiftly, not just because of the headline but because of what it implies: Navitas is no longer a fringe innovator—it is now a critical cog in Nvidia’s power ecosystem. Analysts have taken notice, with multiple price target hikes post-announcement. Wolfe Research raised its target to $230 (from $180), citing Navitas' premium valuation as justified due to its strategic position and growth trajectory. Others like DA Davidson, Evercore, and Goldman Sachs echoed similar upgrades across the board.
Still, some risk factors remain. The pullback from the highs suggests traders may be waiting for follow-through before committing, especially given macro softness in EV and solar. Furthermore, Navitas’ financials are still adjusting to scale, with a net loss of $11.8 million in Q1. However, the firm’s $75 million in cash and no debt position gives it a solid runway.
For now, the setup is compelling: a low-float, high-short-interest name landing a marquee partnership in one of the hottest secular growth areas—AI infrastructure. The convergence of technical innovation and strategic validation could signal a new chapter for Navitas, one where it shifts from a speculative bet to a vital AI infrastructure play.
As Nvidia pushes the boundaries of what’s possible in AI hardware, Navitas is positioning itself to ensure the power behind that revolution is smarter, faster, and more efficient. That’s not just a win for the company—it may be a jolt to the entire power semiconductor landscape.
