Navitas Semiconductor Corp's stock soared 5.86% in overnight trading, recovering from recent sharp declines. The movement aligns with a broad rebound across the semiconductor sector.

The recovery is seen as a technical rebound after the stock experienced consecutive declines. The company's long-term growth thesis, tied to its official partnership with NVIDIA on 800V DC power architecture for the MGX ecosystem, remains a positive factor for investors. The overnight rally resonated with strength seen in peers like Marvell Technology and Micron Technology.

While the collaboration with NVIDIA on AI infrastructure provides a growth narrative, the company faces headwinds including recent quarterly earnings that showed widening per-share losses and declining gross margins, alongside medium-term valuation constraints from planned share issuance.