Shares in gallium nitride (GaN) and silicon carbide (SiC) semiconductor company Navitas Semiconductor (NVTS +2.10%) rose by more than 18% in the week to Friday morning. The move follows another week of positive news flow for a stock that's now up 69% in 2025, after being down by more than 50% in the year to mid-April.
What happened to Navitas Semiconductor's stock
There are no prizes for guessing that the surge for Navitas (a company with just $83.3 million in revenue in 2024) comes from the announcement of a significant collaboration with a technology giant; in this case, Nvidia.
NASDAQ: NVTS
Key Data Points
In a late-May announcement, Navitas stated that Nvidia had selected it to collaborate on developing chips to support Nvidia's 800-volt high-voltage direct current (HVDC) data center infrastructure.
The news sent the stock flying, as 800V HVDC data centers represent the next generation of data centers, planned to start in 2027.
As such, investors are now eagerly following Navitas for news of any updates or new relationships with potential customers, and they received it this week with the announcement of a partnership with BrightLoop, a manufacturer of power electronics for high-performance applications. In this case, Navitas will work with BrightLoop to support the development of hydrogen fuel-cell chargers for agricultural machinery.
Image source: Getty Images.
What's next for Navitas
The developments are exciting and a validation of Navitas' technology. That said, there is still a long way to go before 800 V HCDV data centers are deployed, and Nvidia also has partnerships in place with powerful chip providers such as Infineon, STMicroelectronics, and Texas Instruments. Still, for now, Navitas has a lot of positive momentum behind it, and that's why the market is bidding the stock up now.
