Navitas Semiconductor Corp. (NVTS) Surged on Tech Partnerships With Potential High-Profile Companies

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market showcased a significant recovery during the quarter, rising 23% from low to end the quarter at a record high. U.S. large-cap stocks gained 11.1% in the quarter, and within the large-cap category, growth stocks outperformed value stocks. In this environment, the fund returned 16.42% (net) during the quarter, exceeding 8.59% returns of the Russell 2500 Index and 7.29% returns of the secondary benchmark, the Russell 2500 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Meridian Contrarian Fund highlighted stocks such as Navitas Semiconductor Corporation (NASDAQ:NVTS). Founded in 2013, Navitas Semiconductor Corporation (NASDAQ:NVTS) designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators. The one-month return of Navitas Semiconductor Corporation (NASDAQ:NVTS) was 11.09%, and its shares gained 152.33% of their value over the last 52 weeks. On September 25, 2025, Navitas Semiconductor Corporation (NASDAQ:NVTS) stock closed at $6.51 per share, with a market capitalization of $1.387 billion.

Meridian Contrarian Fund stated the following regarding Navitas Semiconductor Corporation (NASDAQ:NVTS) in its second quarter 2025 investor letter:

"Navitas Semiconductor Corporation (NASDAQ:NVTS) designs and manufactures highly efficient power semiconductors, leading the way in Gallium Nitride (GaN) technology, which enables superior energy efficiency and charging speeds compared to traditional silicon. Handling GaN is challenging, and Navitas has a significant competitive advantage with its technology. We initially invested in early 2023 after the stock fell due to weakness in the highly cyclical mobile phone market. The stock performed well during the period on news of technology partnerships with high-profile potential customers, including Nvidia. We remain confident in the long-term secular outlook for energy-efficient semiconductors and Navitas’ continued technological leadership. We trimmed the position during the quarter, selling into strength as part of our risk management process."

Navitas Semiconductor Corporation (NASDAQ:NVTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 17 hedge fund portfolios held Navitas Semiconductor Corporation (NASDAQ:NVTS) at the end of the second quarter, up from 11 in the previous quarter. Navitas Semiconductor Corporation (NASDAQ:NVTS) reported Q2 revenues of $14.5 million, which was in line with the guidance despite challenges. While we acknowledge the potential of Navitas Semiconductor Corporation (NASDAQ:NVTS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Navitas Semiconductor Corporation (NASDAQ:NVTS) and shared the list of best semiconductor stocks to buy under $20. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.