Navitas has performed poorly since 2021, but a deal with Nvidia offers hope.Navitas Semiconductor (NVTS 1.48%) has emerged as an innovator on the power side of the chip industry. Its gallium nitride (GaN) and silicon carbide (SiC) chips offer a higher level of efficiency compared to traditional silicon semiconductors, while using less energy and occupying less space.However, despite that value proposition, the stock has not performed well since its introduction in 2021. Knowing that, investors may want to l ...

Group 1: Nvidia - Nvidia shares are near new highs following the U.S. government's approval to resume sales of its H20 chip in China, which could unlock billions in quarterly revenue [4] - Analysts expect Nvidia to report $200 billion in revenue for the year, a 53% increase over fiscal 2025, with the resumption of H20 sales likely raising near-term revenue and earnings estimates [5][6] - Nvidia's China business could significantly grow, with planned H20 orders of $8 billion in fiscal Q2 before restrictions [7] - Quarterly adjusted non-GAAP earnings growth is expected to accelerate to 47% year over year in fiscal Q2, with further growth anticipated in subsequent quarters [8] - Nvidia is positioned for high growth rates due to investments in AI infrastructure, with projected revenue growth of 21% annually, reaching $342 billion by fiscal 2030 [10][11] Group 2: Microsoft - Microsoft reported strong demand for AI services in its enterprise cloud business, contributing to its stock reaching new highs [13] - Azure, Microsoft's cloud platform, grew 33% year over year, with 16 percentage points of growth driven by AI services [14] - The company is expanding its data center capacity, opening 10 new data centers across 10 countries to support AI investments [15] - Microsoft Copilot, an AI-powered assistant, has seen a threefold increase in corporate customers, indicating strong market demand [16] - Analysts estimate Microsoft will report $279 billion for fiscal 2025, with an expected annualized growth rate of 13% over the next four years [18]

Core Viewpoint - Nvidia's CEO Jensen Huang projected that data center infrastructure capital expenditure (capex) will exceed $1 trillion by 2028, indicating significant growth potential for the company [1] Group 1: Data Center Infrastructure - The anticipated $1 trillion in data center infrastructure capex by 2028 represents a continued acceleration in spending, which is favorable for Nvidia [2] - Nvidia estimates that data center infrastructure spending will reach approximately $400 billion in 2024, capturing around 25% to 30% of this market [3] - If Nvidia maintains its current market share, it could generate between $250 billion to $300 billion in data center infrastructure revenue by 2028 [4] Group 2: Product Innovations - Nvidia introduced the Blackwell Ultra GPU, which is expected to be more powerful and beneficial for time-sensitive services, with revenue projections exceeding those from the previous Hopper architecture [4] - The company plans to launch the Vera Rubin chip, which combines a GPU with a custom-designed CPU, promising double the speed of previous models [5] - Nvidia also unveiled the open-source software system Nvidia Dynamo, aimed at enhancing inference throughput and reducing costs across thousands of GPUs [6] Group 3: Expansion into New Markets - Nvidia is entering the robotics and autonomous driving markets, introducing the Isaac GROOT N1, an open humanoid robot foundation model [7] - The company is collaborating with General Motors to develop autonomous driving systems, providing GPUs and custom AI systems for manufacturing [9] - This partnership follows a recent deal with Toyota to supply chips and software for advanced driver-assistance features [9] Group 4: Investment Potential - Nvidia continues to innovate and expand beyond data centers, positioning itself as a leader in AI infrastructure and inference [10] - The stock is currently attractively valued, trading at a forward P/E ratio of under 26 and a PEG below 0.5, indicating potential for long-term investment [11]