Tue May 27 15:20:00 UTC 2025: Okay, here’s a summary of the text and a rewritten version as a news article:

**Summary:**

Navitas Semiconductor (NVTS) saw its stock price surge after announcing a partnership with NVIDIA (NVDA). Navitas specializes in “next-generation” power chips using gallium nitride (GaN) and silicon carbide (SiC) instead of traditional silicon. These GaN/SiC chips offer advantages like higher efficiency at higher voltages and smaller size, crucial for increasingly power-hungry AI data centers. NVIDIA plans to use Navitas’ chips in its future Rubin Ultra server racks. While Navitas’ current revenue is low and profitability is negative, analysts anticipate significant revenue growth in the coming years as its design wins translate to production. The article cautions that the stock may face downward pressure in the short term despite its long-term potential. MarketBeat suggests that Navitas may not be the best buy on the market right now despite the recent activity.

**News Article:**

**Navitas Semiconductor Stock Skyrockets on NVIDIA Partnership, Sparking Debate About Long-Term Value**

**[City, State] –** Shares of Navitas Semiconductor (NASDAQ: NVTS) exploded on May 22, soaring over 164% following the announcement of a partnership with tech giant NVIDIA (NASDAQ: NVDA). The deal has put a spotlight on the lesser-known chip company and its focus on “next-generation” power semiconductors.

Navitas specializes in chips made from gallium nitride (GaN) and silicon carbide (SiC), materials that offer significant advantages over traditional silicon in power management. These advantages include higher efficiency at high voltages and a smaller footprint, which are critical for the increasingly demanding power requirements of AI data centers.

NVIDIA plans to integrate Navitas’ GaN and SiC chips into its future Rubin Ultra server racks, slated for release in mid-2027. This move underscores the growing importance of efficient power management as AI technology advances and requires more computational power.

“As AI becomes more complex, servers will need to consume much more power. To make this feasible, NVIDIA wants to re-engineer how power coming from the grid flows into a data center and eventually to each of its advanced AI chips.”

Despite the promising technology and high-profile partnership, Navitas’ current financial performance remains a concern. The company’s revenue for the last 12 months was only $74 million, with sales declining nearly 40% last quarter. It is also deeply unprofitable, with an adjusted operating margin of -84% in the most recent quarter.

Analysts, however, predict a significant turnaround, expecting revenue to surge in 2026 and 2027 as current design wins translate into production and revenue. This is also expected to improve profitability substantially.

“Navitas has been playing the long game,” explains [Insert Analyst Name/Source Here, if available]. “They prioritized becoming an expert in these chips rather than trying to meet the market where it is now.”

While the NVIDIA partnership provides validation of Navitas’ technology and long-term potential, the stock’s meteoric rise may lead to downward pressure in the short term. Investors are cautioned to consider the company’s current financial situation and the time horizon for realizing its potential. MarketBeat recently reported that there may be other stocks more worthy of investors’ consideration than Navitas.

Read More