Navitas (NVTS) surges as its Nvidia (NVDA) partnership powers the next wave of AI data centers.
Navitas Semiconductor stock has been on a tear—up more than 130% this year and recently spiking another 17% to $11.63 after back-to-back rallies. The surge comes as the company deepens its partnership with Nvidia to supply cutting-edge power chips for next-generation AI data centers. With demand for artificial intelligence (AI) computing soaring, Navitas’s gallium nitride (GaN) and silicon carbide (SiC) technologies are emerging as key enablers of the AI revolution.
Key Points
- Navitas stock jumped over 17% after unveiling progress on 800-volt power devices designed for Nvidia’s AI data centers.
- The company’s shift to 8-inch GaN wafers aims to cut costs and boost efficiency.
- Despite strong momentum, NVTS trades at a premium valuation, making timing important for investors.
Why Navitas (NVTS) Stock Is Soaring
Navitas Semiconductor’s recent rally has been fueled by its partnership with Nvidia and progress on high-efficiency 800-volt power architectures for AI data centers. These systems promise to reshape how data centers consume and distribute electricity.Powering Nvidia’s AI factories
Navitas’s GaNFast™ and GeneSiC™ technologies enable ultra-efficient, high-voltage power conversion—critical for next-generation “AI factories” that require multi-megawatt-scale power. Traditional data centers rely on 54-volt systems, which are no longer sufficient for the enormous computational workloads of AI. The new 800-volt direct current (VDC) design reduces resistive losses, minimizes copper usage, and improves thermal management—allowing AI systems like Nvidia’s Rubin Ultra platform to run faster and cooler.A leap toward energy efficiency
According to Navitas, its GaN and SiC chips deliver up to 40% greater energy efficiency compared with traditional silicon. This not only cuts operating costs for data centers but also lowers environmental impact. The company’s new 100-volt GaN field-effect transistors (FETs) are tailored for GPU power boards, delivering superior heat control and compact form factors.What Is the 8-Inch GaN Transition and Why It Matters
To meet rising demand, Navitas is moving from 6-inch to 8-inch GaN wafer production through a partnership with Powerchip. This upgrade could improve scalability and margins while maintaining quality.Higher output, lower cost
The 8-inch wafers can produce roughly 80% more chips per batch than the smaller format, translating into lower costs per unit. Over the next two years, most of Navitas’s high-voltage GaN customers are expected to migrate to this platform.Manufacturing resilience
Navitas’s long-time supplier TSMC will continue providing 6-inch wafers until at least mid-2027, ensuring a smooth production transition. By then, the company aims to expand high-margin manufacturing for data center, EV, and renewable energy markets—all segments with explosive growth potential.Is Navitas Overvalued or Still Undervalued?
Navitas stock has been one of 2025’s standout semiconductor performers, but valuations have climbed.Premium pricing versus peers
The company’s forward price-to-sales (P/S) ratio stands around 33×—well above the semiconductor industry average of roughly 9×. By comparison, Lam Research (LRCX), Marvell Technology (MRVL), and Ambarella (AMBA) trade closer to 8–9×. This premium reflects investor confidence in Navitas’s technology leadership but also raises expectations for future growth.Market outlook remains bullish
Despite analyst caution, NVTS continues to outperform peers. The stock has gained more than 90% over the past three months, compared with an average of 20–30% for competitors. With Nvidia as a key customer and global AI data center demand expected to rise from 7 gigawatts in 2023 to over 70 gigawatts by 2030, Navitas has positioned itself at the heart of an energy transformation.What It Means for Investors
For long-term investors, Navitas offers high-risk, high-reward exposure to the AI infrastructure boom. Its gallium nitride and silicon carbide chips are integral to the power backbone of AI systems, giving the company a strong strategic position. However, near-term volatility remains likely given the company’s high valuation and sensitivity to tariff risks. Investors may want to accumulate shares gradually—buying on pullbacks rather than chasing rallies.Conclusion
Navitas Semiconductor’s breakthrough technologies and Nvidia partnership have catapulted NVTS into the spotlight. Its innovations in high-voltage power systems could make it a major player in AI data center infrastructure. While the stock’s valuation looks stretched, the company’s long-term growth potential remains compelling—especially as the world transitions to more efficient, AI-driven energy architectures.FAQs
Why is Navitas (NVTS) stock up so much in 2025?
Navitas stock surged after announcing new high-voltage GaN and SiC power chips designed for Nvidia’s next-generation AI data centers. The technology improves power efficiency and scalability for large-scale computing platforms.
What is Navitas’s partnership with Nvidia about?
Navitas is working with Nvidia to develop 800-volt power systems that deliver cleaner, more efficient energy to AI data centers. These systems help reduce power losses and cooling costs.
Is Navitas Semiconductor profitable?
Navitas is not yet consistently profitable but is growing rapidly. Revenue is projected to rise over 20% annually as new AI and energy contracts ramp up.
How does Navitas compare to other semiconductor companies?
Navitas trades at a higher valuation than peers like Lam Research and Marvell due to its leadership in gallium nitride and silicon carbide power solutions. Investors are betting on long-term AI and energy growth.
Is NVTS stock a buy right now?
Navitas may be a long-term buy for investors who can tolerate volatility. While the stock’s price has surged, strong demand from AI and energy sectors could sustain growth over time.
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