Is Navitas Semiconductor Stock a buy After Nvidia Enters the Room?

Core Viewpoint - Navitas Semiconductor's stock surged over 160% after Nvidia selected the company to develop 800-volt high-voltage direct current (HVDC) power systems for AI data centers, indicating a significant shift in AI infrastructure [1][5][17] Company Summary - Navitas has a market cap of approximately $886 million and had 12.8% of its shares sold short prior to the announcement, leading to a mix of excitement and skepticism among investors [2][12] - The partnership with Nvidia positions Navitas at the forefront of a major infrastructure overhaul, moving from a 54V power architecture to an 800V HVDC standard capable of supporting IT racks of 1 megawatt or more [5][6] - Navitas' GaN and SiC semiconductors are crucial for this transition, enabling high-frequency switching and thermal efficiency that traditional silicon cannot match [8][9] Industry Summary - The shift to HVDC is essential as traditional power systems are reaching their limits, with Nvidia projecting a 5% improvement in power efficiency, a 45% reduction in copper use, and up to a 70% decrease in maintenance costs for data centers [7] - Navitas' integrated approach to power systems, demonstrated by an 8.5 kW AI data center power supply achieving 98% efficiency, sets it apart from competitors focusing on individual components [10] - The Nvidia partnership not only validates Navitas' technology but also opens up significant market opportunities, potentially leading to broader industry adoption [16][17]