Nvidia and Navitas Partner to Revolutionize AI Chip Efficiency

Nvidia and Navitas have partnered to develop high-voltage DC architecture to support future rack-scale systems, including Rubin Ultra GPUs. Navitas' Gallium Nitride power ICs can help Nvidia slash energy costs, a critical advantage in running high-performance GPUs. The partnership is expected to drive an energy-efficient future for AI. NVTS stock has outperformed NVDA over the past year.

Nvidia (NVDA) and Navitas Semiconductor Corporation (NVTS) have formed a strategic partnership to develop high-voltage DC architecture for future rack-scale systems, including Nvidia's Rubin Ultra GPUs. This collaboration aims to enhance Nvidia's power efficiency, a critical factor in the operation of high-performance GPUs. Navitas' expertise in Gallium Nitride (GaN) power ICs is expected to significantly reduce energy costs for Nvidia, positioning the company to lead in the AI semiconductor market.

The partnership, announced in May, involves Navitas' co-development of Nvidia's 800V high-voltage DC architecture. GaN devices offer superior energy efficiency compared to traditional silicon, with higher power density and cooler operating temperatures. This technology is set to boost Nvidia's power efficiency by approximately 5%, translating into substantial energy savings. Moreover, GaN-based systems are expected to reduce data center maintenance costs by 70% and cut copper wiring needs by 45%, further enhancing Nvidia's operational edge.

Navitas' growth strategy extends beyond AI. The company has diversified its revenue streams, with the EV, solar, and industrial sectors accounting for 60% of its revenue in Q1 2025, up from 15% a year earlier. Navitas has secured major contracts with industry leaders like BYD (BYDDF) and Enphase Energy (ENPH), demonstrating its potential in multiple high-growth industries.

Despite challenges such as cost barriers and manufacturing complexity, Navitas' partnership with Nvidia and Powerchip aims to scale 800V GaN solutions. The AI infrastructure's energy demands are outpacing traditional power systems, creating a critical need for efficient power semiconductors. Navitas' 12-kW power platform for AI servers, while innovative, must compete with cheaper, more readily available legacy solutions.

Investors should be aware of the risks associated with Navitas' growth, including margin pressures, semiconductor industry boom-bust cycles, and geopolitical supply chain disruptions. However, the potential for Navitas to emerge as a critical enabler of large-scale AI adoption, supported by its partnership with Nvidia, presents significant upside potential.

References:

[1] https://www.tipranks.com/news/nvidia-nvda-hails-nvts-as-secret-weapon-in-ai-arms-race
[2] https://www.ainvest.com/news/navitas-semiconductor-q2-earnings-disappoint-ai-hype-evaluating-lag-ai-infrastructure-growth-power-chip-adoption-2508/