Here's Why Navitas Semiconductor Shares Soared in June (Hint: It's Nvidia Related)
Key Takeaways
S in gallium nitride (GaN) and silicon carbide (SiC) semiconductor company Navitas Semiconductor (NVTS 1. 74%) soared by 28. 4% in June, according to data from S&P Global Market Intelligence....
Article Overview
Quick insights and key information
3 min read
Estimated completion
investment
Article classification
July 6, 2025
06:16 AM
The Motley Fool
Original publisher
S in gallium nitride (GaN) and silicon carbide (SiC) semiconductor company Navitas Semiconductor (NVTS 1. 74%) soared by 28. 4% in June, according to data from S&P Global Market Intelligence
The stock has been on a remarkable run recently, and at the time of writing, it's up more than 80% year to date
Why Navitas Semiconductor is surging There's no doubt as to the reason for the move
It comes down to the company's relationship with Nvidia, specifically its potential role in data center architecture for the next generation of data centers, which are set to hit the market in 2027
As previously discussed, the new data centers are ly to be more efficient, require significantly lower maintenance and cooling costs, and offer better reliability
The key to the new 800-volt high-voltage direct (HVDC) current data centers, set to begin in 2027, lies in a fundamental change in how power is distributed from the grid through the data center to the IT racks
That's where Navitas Semiconductor's GaN and SiC power devices come in
Its GaN chips will help with converting 800-volt HVDC down to the lower voltages necessary to run graphics cessing units, which are Nvidia's specialty, in the IT racks
Meanwhile, Navitas' SiC chips are crucial for converting the 13. 8 kilovolt alternating current power from the grid to the 800-volt HVDC used in the new data centers
As such, Navitas' solutions look ly to play a key role in the next generation of data centers that will power the AI revolution
End demand The news of Nvidia's partnership is obviously a plus
Still, investors will also need to see that capital spending on data centers and end demand from AI applications continue to grow at a rate necessary to support a successful rollout of the new data centers in 2027
And here, Navitas investors have reason to be optimistic
Despite the uncertainties created by the trade tariff conflict, there has been no let-up in the data center spending plans of hyperscalers such as Microsoft and Alphabet
In addition, anecdotal evidence from data center equipment companies and contractors indicates that investment in data centers continues to run hot
Image source: Getty Images
Where next for Navitas As with hypergrowth stocks, conventional metrics such as trailing earnings won't make much sense right now
Still, Navitas should expect an aggressive sales ramp-up in 2026, ahead of the launch of the 800-volt HVDC data centers in 2027
As such, the momentum in the development of those sales, along with Nvidia's ary on the gress of its architecture for the new data centers, is ly to be the key driver of the stock price for the foreseeable future
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors
Lee Samaha has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia
The Motley Fool recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet