Here’s Why Nvidia Partner, Navitas Semiconductor powered higher This Week
Posts on: Navitas Semiconductor (NASDAQ:NVTS) It rose 15.6% last week amid optimism that the company’s long-term growth strategy is on track. That’s why investors are feeling better about the stock this week.
The company’s CEO, Chris Allexandre, is quite clear about its future direction. “We are executing a strategic pivot away from consumer and mobile markets towards fast-growing, more profitable, more sustainable, high-power segments,” he summarized in the company’s latest earnings presentation.
A big part of this pivot is partnership. Nvidia will introduce new 800V high-voltage direct current (HVDC) Gallium Nitride (GaN) and Silicon Carbide (SiC) chips data centersIt will be launched in 2027.
But the company’s renewed focus on these end markets and its decision to move away from its less profitable mobile and consumer businesses in China is hurting revenue. As a result, Wall Street expects revenue to fall again from $45.5 million to $36 million in 2026.
So everything revolves around its ability to open up these stronger, higher-profit end markets. As a result, the announcement of a deal with WT Microelectronics, a major Asian distributor, created excitement in the market. As part of the agreement, Navitas is strengthening its distributor base and WT will “lead customer engagement and design activities supported by strong regional logistics to ensure reliable product availability and prompt delivery of Navitas products to customers in Asia.”
WT is a major player in the market for purchasing chips and selling them to original equipment manufacturers, and its growing involvement dovetails nicely with Navitas’ plans. The deal reinforces Navitas’ argument that it is a speculative acquisition in the AI/data center theme. Note that according to Wall Street, Navitas won’t make any profits in the next few years.
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