Here's Why Navitas Semiconductor Shares Popped This Week

Core Insights - Navitas Semiconductor's shares increased by 14.8% following a strong fourth-quarter earnings report, driven by future growth potential, particularly from its partnership with Nvidia [1][4]. Company Overview - Navitas Semiconductor specializes in gallium nitride (GaN) and silicon carbide (SiC) power semiconductors, transitioning from mobile and consumer products to high-growth markets such as AI data centers, energy infrastructure, industrial electrification, and high-performance computing [2]. - The serviceable addressable market (SAM) for these sectors is projected to grow at a compound annual growth rate (CAGR) of 60%-75% from 2025 to 2030, potentially reaching up to $5.4 billion by 2030 [2][3]. Market Dynamics - AI data centers are expected to represent a significant portion of the SAM, estimated at $2.5 billion, with energy and grid infrastructure following at $1.8 billion. The demand for energy infrastructure is increasingly driven by the needs of AI applications [3]. Strategic Partnerships - The partnership with Nvidia to develop chips for 800 Volt high voltage direct current (HVDC) data centers, set to launch in 2027, is seen as a pivotal development for the company, justifying a market cap exceeding $2 billion despite a reported non-GAAP operating loss of $46 million for 2025 [4]. Financial Outlook - Wall Street analysts predict that the company will not achieve profitability by 2027. However, management's guidance indicates a return to sequential revenue growth in the first quarter of 2026 as it prepares to supply power semiconductor solutions for the new AI data centers [5].