What’s Next for Navitas Semiconductor Stock?

October 14th, 2025 by Trefis Team
NVTS: Navitas Semiconductor logo
NVTS
Navitas Semiconductor

Navitas Semiconductor Corp. (NASDAQ: NVTS) has been one of 2025’s most remarkable comeback stories in the chip sector. The stock has more than doubled year-to-date, climbing from around $5 at the start of the year to nearly $10 in mid-October. The rally has been fueled by a mix of innovation, powerful partnerships, and investor enthusiasm around next-generation power semiconductors that could reshape how energy is delivered in an AI-driven world.

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Why the surge?

The turning point for Navitas came with its high-profile partnership with Nvidia earlier this year. The company announced that its gallium nitride (GaN) and silicon carbide (SiC) power chips would be used in Nvidia’s new 800-volt high-voltage direct current (HVDC) data center architecture — technology designed to make AI infrastructure more energy efficient. The news electrified the market, instantly linking Navitas to the AI infrastructure boom that has already powered huge gains for Nvidia and its suppliers. Investors began to see Navitas not just as a niche chipmaker, but as a potential enabler of next-generation data center efficiency.

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Still, there are real tailwinds behind the excitement. GaN and SiC chips are increasingly viewed as the future of power management. They’re faster, more efficient, and more compact than traditional silicon components — qualities that matter immensely as data centers consume ever-larger amounts of power to support AI workloads. Navitas’s 200 mm GaN manufacturing expansion and partnerships with foundries like PSMC show it’s preparing to scale. If successful, the company could emerge as a major supplier for high-efficiency power solutions across EVs, renewables, and cloud infrastructure.

However, risks remain. Navitas is not yet profitable, and many believe that the valuation has run well ahead of earnings power. Some estimates peg fair value far below current trading levels, suggesting the stock is being driven by narrative more than numbers. Furthermore, larger semiconductor players — including Infineon, Texas Instruments, and STMicroelectronics — are also advancing in GaN and SiC, meaning Navitas will face tough competition in capturing market share.

What’s Next?

Looking ahead, the next phase for Navitas will depend on execution. Investors will be watching the upcoming quarterly results closely for signs of real revenue traction from its Nvidia collaboration and broader data center demand. Guidance on margins, bookings, and manufacturing progress could determine whether the stock consolidates its gains or retreats. Positive design wins or long-term supply agreements with hyperscalers could further validate its positioning, while any delays in scaling production could cool sentiment quickly.

In essence, Navitas’s rally embodies both promise and speculation. The company sits at the crossroads of two major technology trends — power efficiency and AI infrastructure — but it still needs to prove it can convert those opportunities into sustained profitability. For now, NVTS remains a high-volatility, high-reward play on the electrification of the digital world. Whether the stock’s next move is higher or lower will depend on whether the story evolves from a powerful narrative into tangible, repeatable financial performance.

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