Navitas Semiconductor Just Landed a Nvidia Deal. How Should You Play NVTS Stock Here?
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Navitas (NVTS) shares more than doubled this morning after the power semiconductor company said it has teamed up with Nvidia (NVDA) on its cutting-edge 800V high-voltage direct current (HVDC) architecture.
The next-gen architecture is designed to improve the efficiency and scalability of AI workloads. It reduces copper usage by 45% compared to conventional 54DC systems, helping lower costs and enhance reliability as well.
Including today’s surge, Navitas stock is up more than 200% versus its year-to-date low.
What Nvidia Partnership Means for Navitas Stock
Investors are cheering NVTS shares today because the Nvidia collaboration positions the company as a key player in next-generation AI power infrastructure.
A vote of confidence from the AI darling brings Navitas more visibility in the semiconductor space, which may translate to more partnerships over time.
It could help reaccelerate the company’s revenue as well that was down nearly 40% on a year-on-year basis in its fiscal Q1.
All in all, investors seem to be reading the team up with NVDA as simply a validation of Navitas’ technology. That is what’s driving the semiconductor stock up on Thursday.
Needham Recommends Caution on NVTS Shares
While the Nvidia partnership is evidently meaningful for the Nasdaq-listed firm, investors should remain wary of loading up on NVTS shares at current levels since the related rally may have gone a bit too far.
According to analysts at Needham, caution is warranted on Navitas stock as tariff volatility and a delayed solar BDS opportunity could weigh on the company’s growth in the back half of 2025.
In its latest research note, the investment firm lowered its price target on Navitas Semiconductor to $3, which indicates potential downside of about 35% from current levels.
Investors should note that the power semiconductor company itself guided conservatively for up to $15 million in revenue for its fiscal second quarter on May 5.
Are Other Analysts Also Cautious on Navitas?
Analysts at other Wall Street firms agree with Needham’s cautious stance on Navitas stock as well.
The consensus rating on NVTS shares currently sits at “Moderate Buy,” but the mean target of $3.22 indicates potential downside of about 33% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.