Shares of Navitas Semiconductor (NVTS 164.66%) are skyrocketing on Thursday. The company's stock soared an incredible 156% as of 1:57 p.m. ET, and as much as 161.8% earlier in the day's trading. The remarkable gain comes as the S&P 500 (^GSPC -0.04%) gained 0.2% and the Nasdaq Composite (^IXIC 0.28%) jumped 0.6%.
The semiconductor company announced a new partnership with artificial intelligence (AI) chip giant Nvidia after the market closed yesterday.
A massive partnership
Navitas announced Wednesday that Nvidia has selected the company to help power its next-generation AI data center systems that will include the much anticipated Rubin chips, the upcoming successor to its current, industry-leading Blackwell chips.
Navitas says its gallium nitride (GaN) and silicon carbide (SiC) technologies will help Nvidia solve key scaling issues with its power supply for the incredibly powerful AI-enabling chips. The technologies create "high-efficiency, scalable power delivery for next-generation AI workloads, ensuring greater reliability, efficiency, and reduced infrastructure complexity."
Image source: Getty Images.
A major validation
The deal is important not just because it will bring in significant revenue, but because in partnering with the world's leading AI chipmaker, Navitas' technology is validated to the entire industry.
Gene Sheridan, CEO of Navitas, said, "We are proud to be selected by Nvidia to collaborate on their 800 HVDC architecture initiative," adding, "Our latest innovations... have created new inflections into markets such as AI data centers and electric vehicles."
I think Navitas stock is worth owning; this seal of approval from Nvidia is a game changer, and the company's balance sheet is solid, with minimal debt.
