Navitas Semiconductor Corp (NVTS) is experiencing a pre-market plunge of 5.74% on Friday, continuing the downward trend that began in after-hours trading the previous day. This decline follows an extraordinary rally during Thursday's regular trading session, where the stock had surged by over 150%.

The volatility in Navitas' stock price stems from a major partnership announcement with Nvidia (NVDA). The collaboration, revealed overnight Wednesday, involves Navitas' technology being chosen for Nvidia's 800V high-voltage direct current (HVDC) architecture to support Kyber rack-scale systems powering Nvidia's graphics processing units. This news sparked intense investor interest, driving Navitas' shares to more than double in value during Thursday's regular trading, with gains reaching as high as 175% at one point.

However, the excitement seems to be cooling off as investors reassess the stock's valuation. The current pre-market decline, following Thursday's after-hours drop of over 5%, suggests a potential correction or profit-taking by investors after the previous day's extraordinary gains. Despite this downward movement, it's worth noting that Navitas Semiconductor's stock price remains significantly higher than its closing price before the Nvidia partnership announcement, indicating that the market still views the collaboration positively overall. This rapid fluctuation underscores the high investor sensitivity to news in the semiconductor sector, particularly involving partnerships with industry leaders like Nvidia.