Navitas Semiconductor (NVTS) stock is surging after the company announced it will supply critical GaN and SiC power chips for Nvidia’s next-generation 800-volt “AI factory” architecture. Here’s what investors need to know about the news driving NVTS stock.
NVTS stock experienced a massive surge, climbing as much as 27% this week after a pivotal announcement from Navitas Semiconductor on Monday, October 13. The company confirmed it will supply advanced Gallium Nitride (GaN) and Silicon Carbide (SiC) power chips for Nvidia’s highly anticipated 800-volt (800V) AI data center architecture. This news, which sent the stock from around $9.97 to a high of $12.71, positions Navitas as a key enabler of Nvidia’s “AI factory” vision and has ignited intense investor interest in NVTS stock, which is now up approximately 179% year-to-date.
The Nvidia “AI factory” deal driving the NVTS stock rally
The catalyst for the dramatic rise in NVTS stock is its direct alignment with Nvidia’s next-generation data center strategy. Nvidia is spearheading an industry-wide shift to massive “AI factories” built on an 800V DC power backbone. This architecture is a revolutionary step up from legacy 50V systems, allowing data centers to transport over 150% more power with the same amount of copper. The result is a dramatic improvement in energy efficiency, scalability, and power density—all essential for running racks containing hundreds of power-hungry GPUs like Nvidia’s upcoming Rubin Ultra platform.
This isn’t just an Nvidia initiative; the entire industry is getting on board. Major players like ABB, Vertiv, Renesas, and Analog Devices have all announced 800V power systems and controllers. Navitas’s announcement places it at the core of this technological shift, supplying the foundational components that make this high-voltage architecture possible.
What are GaN and SiC?
At the heart of Navitas’s value proposition are its Gallium Nitride (GaN) and Silicon Carbide (SiC) semiconductors. These “wide-bandgap” materials are fundamentally superior to traditional silicon for high-power applications. According to Navitas, its GaN chips can:
- Switch 100 times faster than silicon.
- Boost energy efficiency by up to 40%.
- Run cooler and enable much smaller, denser power systems.
These advantages are critical for managing the multi-megawatt power requirements of Nvidia’s AI factories. Navitas has developed purpose-built 100V GaN FETs for the final power conversion stages on GPU boards and 650V GaN/SiC devices for the initial high-power stages. This technological edge is why the market is betting heavily on the future of NVTS stock.
The Nvidia partnership is the culmination of a deliberate strategic pivot for Navitas. Under new CEO Chris Allexandre, formerly of Renesas, the company has shifted its focus away from the low-margin mobile fast-charger market. It is now targeting high-growth, high-power sectors: AI data centers, electric vehicles, and renewable energy infrastructure.
To fuel this transition, Navitas raised $100 million in Q2 2025 and is building a new GaN fabrication plant to meet anticipated demand. This strategic shift makes the Nvidia deal less of a surprise and more of a validation of the company’s new direction, providing a compelling long-term growth story for investors in NVTS stock.
NVTS stock analysis: Valuation, financials and high short interest
While the future looks bright, a closer look at the financials reveals why NVTS stock is so volatile. The company is not yet profitable, reporting a GAAP loss of $21.7 million on just $14.5 million in revenue in Q2 2025. Furthermore, the stock trades at a very rich valuation of approximately 30 times forward sales, far above the industry average.
Adding to the risk is a very high short interest, with around 25% of the stock’s float being shorted. This indicates that a significant number of investors are betting against the company, likely due to its current unprofitability and high valuation. This large short position also means the stock is susceptible to a “short squeeze,” which may have contributed to the recent price spike.
What analysts are saying about NVTS stock
Wall Street analysts are divided on the outlook for NVTS stock. Following the Nvidia news, firms like Rosenblatt and Needham reiterated “Buy” ratings with price targets around $8, citing the deal as a powerful endorsement of Navitas’s technology.
However, other analysts are more cautious. Deutsche Bank and Craig-Hallum have “Hold” ratings, pointing to the company’s current financial performance and broader market headwinds. The average price target among tracked analysts is only $5.60, suggesting that many believe the stock is currently overvalued and that the excitement around the Nvidia partnership may already be “priced in.” Investors will be watching closely to see if Navitas can convert its technological leadership into substantial revenue in 2026 and beyond.
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