Nio, EVgo, and Navitas will all profit from the electric vehicle market's recovery.Many electric vehicle (EV) stocks soared in 2020 and 2021, but a lot of them fizzled out over the following years as rising interest rates chilled the hot market. Price wars, supply chain disruptions, inflation, higher tariffs, and intensifying trade wars exacerbated that pressure.However, investors who can look past those near-term headwinds might find some promising plays in what has become an out-of-favor sector. I believe ...

Core Insights - Aehr Test Systems experienced significant stock volatility in 2025, with a 22.2% decline in the first half, following a 56% drop in the first quarter and a subsequent 77.4% rise in the last quarter of the half-year [1][2]. Financial Performance - The company's financial year ends on May 30, and for the fiscal year 2024, the silicon carbide (SiC) wafer-level burn-in (WLBI) market accounted for 90% of its sales [2]. - In fiscal year 2025, SiC WLBI revenue dropped to less than 40% of total revenue, indicating a significant shift in the company's revenue sources [4]. Market Dynamics - ON Semiconductor, a key customer, has faced a sales slowdown, reflecting a broader downturn in the SiC market, particularly in the electric vehicle (EV) sector, influenced by high interest rates and a correction from previous EV spending booms [3]. - The weakening EV market negatively impacted Aehr's growth prospects in the SiC WLBI market during the first three months of fiscal 2025 [4]. Strategic Developments - A turnaround in Aehr's stock occurred after the third-quarter earnings report in April, where management announced plans to expand into new markets, projecting that 35% of revenue would come from the artificial intelligence (AI) processor burn-in market [5]. - The company has secured four customers contributing over 10% of revenue, with three of these being in new markets, including gallium nitride (GaN) semiconductor supply for the automotive sector [5]. Customer Base and Future Outlook - Aehr has identified a major hyperscaler as a first production AI customer in the packaged part burn-in (PPBI) market, with notable customers including Microsoft, Google, Nvidia, ON Semiconductor, and Infineon [7]. - Management believes that AI end markets could be 3 to 5 times larger than traditional SiC markets, which is driving optimism and strength in the current stock price [8].

Core Viewpoint - Navitas Semiconductor's shares surged by 83.5% in the first half of 2025 due to its partnership with Nvidia to develop next-generation data centers set to launch in 2027 [1] Industry Overview - The increasing demand from AI applications is straining global data center capacity, impacting power grids, networks, and infrastructure [2] - New 800-volt high voltage direct current (HVDC) data centers will convert 13.8 kV alternating current (AC) grid power to 800-volt HVDC, improving efficiency and reducing conversion steps compared to traditional data centers [3] Technological Advancements - Nvidia's new data centers will enhance efficiency, reduce copper requirements, increase reliability, decrease cooling needs, and lower maintenance costs by up to 70% [4] - Navitas Semiconductor's silicon carbide chips are crucial for converting grid power to 800-volt HVDC, while its gallium nitride (GaN) chips facilitate efficient power conversion at the IT rack [5][7] Future Outlook for Navitas Semiconductor - With the new data centers expected to be operational in 2027, significant sales growth is anticipated for Navitas, with projections of 50% and 40% sales growth in 2026 and 2027 respectively [9]

Key Takeaways NVTS and BrightLoop will pair SiC tech with fuel-cell systems for heavy-duty transport applications. NVTS joined NVIDIA to boost power efficiency in AI data centers with GaNFast and GeneSiC technologies. NVTS partnered with GigaDevice and Great Wall Power to develop smart, high-density power solutions.Navitas Semiconductor (NVTS) is actively forging strategic collaborations and partnerships across the power electronics ecosystem, accelerating the adoption of its gallium nitride (GaN) and sil ...

Navitas Semiconductor (NVTS 10.74%) stock is seeing big gains in Tuesday's trading. The company's share price was up 8.4% as of 1:30 p.m. ET amid a 1% gain for the S&P 500 index (^GSPC 1.15%) and a 1.4% jump for the Nasdaq Composite (^IXIC 1.52%).The company's valuation is surging today thanks to positive developments on geopolitical and macroeconomic fronts. The stock is also rising in conjunction with an announcement that the company has received an award from one of its partners. A Navitas collaborator i ...

Core Viewpoint - Navitas Semiconductor's GaN and SiC technologies have been selected to support NVIDIA's next-generation 800 V HVDC data center power infrastructure, which is designed to enhance power delivery for AI workloads and support 1 MW IT racks and beyond [1][15]. Group 1: Technology Collaboration - The collaboration between Navitas and NVIDIA focuses on the 800 V HVDC architecture, which aims to provide high-efficiency and scalable power delivery for AI workloads, improving reliability and reducing infrastructure complexity [2][4]. - Navitas' GaNFast™ and GeneSiC™ technologies will enable the powering of NVIDIA's GPUs, such as the Rubin Ultra, directly from the 800 V HVDC system [1][6]. Group 2: Advantages of 800 V HVDC - The existing data center architecture, which uses traditional 54 V in-rack power distribution, is limited to a few hundred kilowatts and faces physical limitations as power demand increases [3]. - The 800 V HVDC system allows for a reduction in copper wire thickness by up to 45%, significantly decreasing the amount of copper needed to power a 1 MW rack, which is crucial for meeting the gigawatt power demands of modern AI data centers [5][6]. - This architecture eliminates the need for additional AC-DC converters, directly powering IT racks and enhancing overall system efficiency [6][13]. Group 3: Performance and Efficiency - NVIDIA's 800 V HVDC architecture is expected to improve end-to-end power efficiency by up to 5%, reduce maintenance costs by 70% due to fewer power supply unit (PSU) failures, and lower cooling costs by connecting HVDC directly to IT and compute racks [13]. - Navitas has introduced several high-efficiency power supply units (PSUs), including a 12 kW PSU that meets 98% efficiency, showcasing the company's commitment to innovation in power delivery for AI data centers [12]. Group 4: Company Background - Navitas Semiconductor, founded in 2014, specializes in next-generation power semiconductors, focusing on GaN and SiC technologies for various markets, including AI data centers and electric vehicles [17]. - The company holds over 300 patents and is recognized for its commitment to sustainability, being the first semiconductor company to achieve CarbonNeutral® certification [17].