By Nate Wolf
Navitas Semiconductor stock spiked on Wednesday after the power-chip maker showcased its partnership with Nvidia.
Navitas is working within Nvidia's MGX artificial-intelligence infrastructure.
Last week, Navitas participated in an Nvidia partner ceremony at a trade conference in Taiwan, the company said in a statement. This week, it is showing off one of its power-delivery boards at Nvidia's MGX ecosystem showcase, which is also in Taiwan.
In afternoon trading, shares of Navitas were up 23%. The stock has gained about 370% in the past year, pushed up by power demand from data centers. Navitas now trades at 137 times estimated sales over the next 12 months, up from a 14.7-times multiple a year ago.
"As AI workloads continue to scale and drive unprecedented demand for compute, power delivery has become one of the most critical challenges in enabling next-generation gigawatt AI factories," said CEO Chris Allexandre in the statement.
Navtias isn't the only company that has felt the warmth from a partnership with Nvidia.
Marvell Technology recorded its highest daily percentage rise on Tuesday after Nvidia CEO Jensen Huang pinpointed the networking supplier as the "next trillion-dollar company."
Fluence Energy, a battery energy-storage company, got a bump from its work with Nvidia to develop data centers.
The AI euphoria hasn't had the same impact on Nvidia shares, which are up a more modest 16% this year. The stock fell 3.4% on Wednesday.
Analysts are skeptical Navitas can live up to the lofty, Nvidia-driven hype. The company is expected to report $42 million in revenue this year, according to FactSet -- down from $45.9 million in 2025.
Wall Street sees that number jumping to $72.9 million in 2027 and $124.6 million in 2028, but analysts still expect deep losses in those years.
Write to Nate Wolf at nate.wolf@barrons.com
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June 03, 2026 14:49 ET (18:49 GMT)
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