Navitas Semiconductor (NVTS) Is Up 5.2% After NVIDIA Partnership to Power AI Data Centers – Has the Bull Case Changed?

• Navitas Semiconductor recently announced a major partnership with NVIDIA to co-develop advanced 800V high-voltage DC power architecture for AI data centers, and shared plans to move its GaN chip production to 8-inch wafers with Powerchip for greater efficiency and output.
• This focus on engineering power solutions for AI infrastructure and increasing manufacturing scale marks a shift away from lower-margin consumer products, highlighting the company’s intention to target high-performance, high-growth markets.
• We'll explore how the NVIDIA collaboration, aimed at scaling AI data center power solutions, reshapes Navitas Semiconductor's investment narrative.

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Navitas Semiconductor Investment Narrative Recap

To believe in Navitas Semiconductor as a shareholder, you need confidence that its pivot to advanced power solutions for AI data centers and high-growth markets will eventually overcome current revenue pressures and margin challenges. The recent NVIDIA partnership adds momentum to this narrative, positioning Navitas as a potential supplier at the heart of AI infrastructure. However, upcoming Q3 2025 financial results remain the key short-term catalyst, and also the primary risk, since ongoing revenue softness and uncertain forecasting could outweigh partnership news if results miss expectations.

Among recent developments, the move to 8-inch GaN wafer production with Powerchip stands out for its relevance; this transition could improve margins and efficiency, enhancing Navitas’s ability to scale in more lucrative data center markets. As the company shifts further away from lower-margin consumer business, investors focused on growth potential in AI and industrial sectors are likely to watch closely how this operational change influences both output and future earnings trajectory.

By contrast, financial results remain highly relevant, since even the best technology and partnerships cannot offset the risks from...

Read the full narrative on Navitas Semiconductor (it's free!)

Navitas Semiconductor's narrative projects $129.8 million revenue and $18.3 million earnings by 2028. This requires 23.9% yearly revenue growth and a $142.8 million increase in earnings from -$124.5 million.

Uncover how Navitas Semiconductor's forecasts yield a $6.74 fair value, a 18% downside to its current price.

Exploring Other Perspectives

Fair value ideas from 12 Simply Wall St Community members range from US$2.10 to US$26.76 per share. Revenue softness in key verticals and the upcoming Q3 results add extra weight to each of these divergent viewpoints, explore a range of opinions before deciding for yourself.

Explore 12 other fair value estimates on Navitas Semiconductor - why the stock might be worth less than half the current price!

Build Your Own Navitas Semiconductor Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Navitas Semiconductor research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free Navitas Semiconductor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Navitas Semiconductor's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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