Navitas Stock Surges 130% on Nvidia AI Partnership

Navitas Semiconductor (NASDAQ: NVTS) saw its stock price more than double on Thursday following a major announcement that it's partnering with Nvidia to develop high-efficiency, scalable power delivery solutions for next-generation AI workloads. The news sparked a massive surge in investor interest, pushing Navitas shares up over 130% to $4.40 during intraday trading. This marked a dramatic reversal for the chipmaker, which had been hovering just above its all-time low a day prior.

The partnership was disclosed as part of Nvidia’s broader unveiling of a new power distribution architecture for AI systems earlier this week. While the announcement flew under Wall Street's radar at first, it has since drawn attention for naming several collaborators, including industry players like Infineon, Texas Instruments, Eaton, Vertiv—and Navitas.

Navitas, which calls itself the only pure-play next-generation power semiconductor company, posted $83.3 million in revenue last year and reported a net loss of $84.6 million, or 46 cents per share. The company went public in late 2021 through a SPAC merger, debuting at nearly $13 per share. It briefly touched an all-time high of $20 in November that year, but the stock has since faced significant downward pressure, closing at just $1.91 on Wednesday—barely above its record low.

This week’s news has placed Navitas in the growing category of lesser-known firms that have seen their market value skyrocket following ties to Nvidia. The trend mirrors what happened with Serve Robotics last year, when its shares tripled in a day after Nvidia revealed a 10% stake in the robotics company. Earlier this year, Chinese autonomous driving firm WeRide also saw a stock bump following Nvidia’s investment.

While the long-term impact of this partnership remains to be seen, Thursday's rally lifted Navitas shares into positive territory for the year, a significant milestone given the stock’s recent struggles. For now, Nvidia’s endorsement appears to have reignited investor confidence in Navitas’ future role in powering AI infrastructure.

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