Shares of Navitas Semiconductor Corp (NASDAQ:NVTS.O) surged nearly 160% on Thursday after the company announced a collaboration with Nvidia to supply advanced power solutions for next-generation data centers.
The partnership, revealed after market close on Wednesday, will see Navitas' gallium nitride (GaN) and silicon carbide (SiC) technologies integrated into Nvidia’s 800V high-voltage direct current (HVDC) architecture starting in 2027.
The systems will power 1 MW racks like Nvidia’s Rubin Ultra platform and beyond.
The move is part of Nvidia’s strategy to streamline data center power systems by converting 13.8kV alternating current grid power directly into 800V HVDC using solid-state transformers and industrial-grade rectifiers. This approach eliminates multiple conversion steps, boosting overall power efficiency by up to 5%, while slashing maintenance costs by 70% and reducing cooling requirements, according to the companies.
Navitas’ GaN and SiC components are central to enabling this transition, Baird analysts wrote in a note Thursday, calling the announcement a strong validation of the company’s technology leadership.
“Navitas addresses the energy bottlenecks driven by power-hungry AI applications with best-in-class GaN and SiC technologies,” Baird wrote, adding that the company has a “multi-year technology lead” in GaN solutions.
The brokerage, which rates the stock "Outperform," highlighted Navitas' GaNSafe power ICs, which integrate control, drive, sensing, and protection features for what it describes as the industry’s safest GaN solution. The company’s medium-voltage GaN devices and GeneSiC trench-assisted planar SiC technology are also seen as key enablers for efficient, high-reliability power delivery.
Navitas recently demonstrated a 12kW power supply unit (PSU) that achieved more than 99% efficiency, reducing power losses by 30% — a significant leap over the 4.5kW PSUs commonly used in current Nvidia systems. The new PSU could help double rack power capacity to 500kW in future platforms, the company said.
Baird noted that Navitas now has more than 75 data center customer projects using GaN, SiC or both technologies, up from 40 at the end of last year.
“Today’s announced Nvidia engagement reaffirms Navitas as the technology and performance leader in the field,” Baird wrote.
The brokerage cited Navitas' strong growth prospects and fast adoption potential in the analog semiconductor market.
Shares of Navitas were trading just shy of $5 on Thursday afternoon.