Navitas Semiconductor Corp (NVTS) stock soared 5.19% in pre-market trading on Monday, continuing its impressive run this year. The surge comes as investors react positively to the company's collaboration with Nvidia on next-generation data center technology.
Navitas, a specialist in gallium nitride (GaN) and silicon carbide (SiC) semiconductors, is working with Nvidia to develop 800-volt high-voltage direct current (HVDC) data center architecture. This new technology is expected to improve efficiency by 5%, reduce maintenance costs by 70%, and cut the total cost of ownership by 30% compared to traditional data centers. Navitas' role in this partnership involves providing power conversion solutions for the entire power process in these advanced data centers.
The collaboration with Nvidia has been a significant catalyst for Navitas' stock, which has already risen over 100% year-to-date. As a pure-play GaN and SiC company, Navitas stands to benefit substantially from any significant revenue generated by the growth of 800V HVDC data centers. While the company faces competition from larger players like Infineon and STMicroelectronics, its specialized focus and Nvidia backing have excited investors about its future prospects in the rapidly evolving AI and data center markets.
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