NEW YORK – Shares of Navitas Semiconductor (NASDAQ: NVTS), a specialized maker of gallium nitride (GaN) and silicon carbide (SiC) chips, have been on an absolute tear, rocketing up 28.4% in June alone and bringing its year-to-date gain to a staggering 80%.
This explosive growth isn’t random; it’s directly tied to the company’s crucial role as a key enabler for Nvidia and the next generation of data centers that will power the global AI revolution.
The Nvidia Connection: The Power Behind the AI Boom
The surge in Navitas stock is rooted in its strategic importance to the future of data center architecture, set to launch in 2027. As AI models become exponentially more powerful, they require a new generation of data centers that are not only faster but also vastly more power-efficient.
This is where Navitas comes in. The new standard, built around 800-volt high-voltage direct current (HVDC), requires a fundamental redesign of how power is managed—from the grid all the way to the individual processors. Navitas’s specialized chips are the linchpin of this new architecture.
Here’s how its technology fits into Nvidia’s ecosystem:
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Silicon Carbide (SiC) Chips: These are the first point of contact. Navitas’s SiC chips are essential for efficiently converting the massive 13.8 kilovolt AC power from the electrical grid into the 800-volt HVDC that will run through the new data centers.
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Gallium Nitride (GaN) Chips: Once inside the data center, the power needs to be stepped down for the individual components. Navitas’s high-efficiency GaN chips handle the critical task of converting the 800-volt current to the lower voltages needed to run Nvidia’s power-hungry graphics processing units (GPUs)—the brains of the AI operation.
In short, Navitas is providing the essential power management backbone that will allow Nvidia’s next-gen AI hardware to operate with greater efficiency, reliability, and lower cooling costs.
Confidence in the Cloud: Data Center Spending Remains Hot
While the partnership with Nvidia is the primary catalyst, the investment thesis is supported by relentless demand across the tech industry. Investors can be optimistic as the world’s largest “hyperscalers,” including Microsoft and Alphabet, continue to pour billions into data center expansion, undeterred by global trade tensions.
Anecdotal evidence from across the supply chain confirms that investment in data centers is “running hot,” ensuring that the demand for the next generation of infrastructure will be robust when it rolls out.
What Investors Should Watch Next
For a hypergrowth company like Navitas, traditional valuation metrics like trailing earnings are largely irrelevant. The market is pricing the stock based on its future potential, not its past performance.
The key driver for Navitas’s stock price going forward will be the execution of its sales strategy leading up to the 2027 launch. Investors should keep a close eye on two things:
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The 2026 Sales Ramp-Up: Expect Navitas to begin an aggressive sales push in 2026 as data center builders prepare for the new architecture.
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Commentary from Nvidia: Any updates from Nvidia on the progress and adoption of its new data center architecture will be a direct signal for Navitas’s future success.
For now, Navitas Semiconductor has positioned itself not just as a component supplier, but as a fundamental building block for the next wave of artificial intelligence.
