Why This Nvidia Partner's Stock Soared This Week

Navitas Semiconductor's (NVTS) stock rose over 18% this past week, extending its 2025 gains to 69% after a previous decline of over 50%, driven by positive news including a collaboration with Nvidia to develop chips for 800V HVDC data centers planned for 2027. The surge was further fueled by a new partnership with BrightLoop to develop hydrogen fuel-cell chargers for agricultural machinery, though competition from larger chip providers and the long timeline for data center deployment remain considerations.

Analysis

Navitas Semiconductor (NASDAQ: NVTS) shares surged over 18% in the week to Friday morning, extending its year-to-date gain in 2025 to 69%, a notable reversal from a decline exceeding 50% recorded by mid-April. This rally is principally driven by a late-May announcement of a collaboration with Nvidia to develop chips for its 800-volt high-voltage direct current (HVDC) data center infrastructure, a next-generation technology anticipated to commence deployment in 2027. Further bolstering investor sentiment, which is particularly strong for NVTS (per-ticker sentiment score 0.8), was a new partnership with BrightLoop to co-develop hydrogen fuel-cell chargers for agricultural machinery. These strategic alliances are significant for Navitas, a company with a relatively modest $83.3 million in revenue in 2024, as they validate its gallium nitride (GaN) and silicon carbide (SiC) technology in high-growth end markets. However, the market's generally "speculative" tone, as indicated by signals, is warranted given the extended timeline for the 800V HVDC data center rollout and the presence of formidable competitors such as Infineon, STMicroelectronics, and Texas Instruments, who also maintain partnerships with Nvidia.

Key Decisions for Investors

• Investors could consider Navitas for its strategic positioning in emerging high-growth GaN and SiC markets, particularly following key collaborations with Nvidia for next-generation data centers and BrightLoop for hydrogen fuel-cell applications.
• It is prudent to exercise caution due to the speculative nature of the current rally, the multi-year lead time for the 800V HVDC data center deployment (post-2027), and significant competition from larger, established semiconductor firms.
• Closely monitor progress updates on the Nvidia and BrightLoop partnerships, alongside any new customer acquisitions or technological milestones, as these will be critical validation points for Navitas' ability to scale its operations from its current $83.3 million revenue base.