NVTS Surges 54% in 6 Months: Should You Hold or Fold the Stock?

Navitas Semiconductor NVTS shares have rallied 54.4% in the past six months, outperforming the Zacks Electronics - Semiconductors industry’s growth of 25.8%. The stock also outperformed its industry peers, including Broadcom AVGO, Marvell Technology MRVL and Ambarella AMBA. In the past six months, shares of Broadcom, Marvell Technology and Ambarella have risen 26.7%, 22.7% and 22.6%, respectively.

Navitas Semiconductor’s focus on power chips for artificial intelligence (AI) data centers and its shift to cost-efficient manufacturing have fueled optimism about its growth prospects. The outperformance of Navitas Semiconductor’s share price raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let us find out.

6-Month Price Return Performance

NVTS Gains From Rising Demand for AI Data Centers

Navitas Semiconductor is trying to reposition itself around high-power markets, and its inclusion in NVIDIA’s new 800-volt AI factory ecosystem is an important step. The new architecture shifts data center power distribution from traditional AC/DC stages to a high-voltage DC approach that requires faster, more efficient power electronics. This creates an opening for Navitas Semiconductor’s gallium nitride (GaN) and high-voltage silicon carbide (SiC) technologies, both of which are now part of the NVIDIA-led ecosystem.

In the third quarter of 2025, Navitas Semiconductor highlighted that it is one of the few companies offering both GaN and SiC solutions across the full power path from the grid to the graphics processing unit. The company has begun sampling mid-voltage GaN devices at 100 volts, which target the last stage of power conversion inside AI servers. It is also sampling 2.3 kV and 3.3 kV SiC modules for grid and energy storage applications that support these new data center designs.

NVTS expects 2026 to be a transition year, with small but growing shipments tied to traditional server power supplies. The larger opportunity depends on how fast hyperscalers adopt the 800-volt architecture and will depend on Navitas Semiconductor's ability to secure multi-generation design wins.

Strategic Partnerships Boost NVTS’ Prospects

Navitas Semiconductor is strengthening its position in high-power markets through strategic partnerships. In mid-December, Navitas Semiconductor expanded its distribution relationship with Avnet, making the latter a globally franchised distribution partner. Under the deal, Avnet will provide technical and commercial support for NVTS’ GaN and SiC products across regions.

In early December, NVTS entered into a long-term strategic partnership with Cyient Semiconductors to accelerate GaN adoption in India. The two companies plan to co-develop GaN products, system modules and design platforms aimed at high-voltage, high-power markets, such as AI data centers, electric mobility and grid infrastructure.

In late November, Navitas Semiconductor expanded its partnership with WT Microelectronics in Asia. NVTS is consolidating its distributor base, and WT Microelectronics will take the lead for customer engagement and logistics in Asia, per the partnership agreement. This collaboration is meant to improve support for high-power customers in the region.

In mid-November, Navitas Semiconductor announced a long-term partnership with GlobalFoundries. Under this collaboration, the two companies will develop and manufacture next-generation GaN power devices at Global Foundries’ Vermont facility, with development planned for early 2026 and production expected later that year.

These strategic partnerships align with the company’s “Navitas 2.0” strategy. Under the Navitas 2.0 strategy, the company is reallocating resources toward high-power customers, pruning lower-margin mobile business, and working more closely with hyperscalers, graphics processing unit vendors and system OEMs.

These partnerships bode well for the company's prospects as Navitas Semiconductor is trying to prepare for future demand. Through these strategic partnerships, NVTS aims to strengthen its supply chain, improve customer access, and prepare for large future opportunities, once high-power markets begin to scale in 2026 and 2027.

NVTS Earnings Estimate Shows Upward Trend

For full-year 2025, the Zacks Consensus Estimate for NVTS’ bottom line is pegged at a loss of 21 cents per share, unchanged over the past 60 days. NVTS reported a loss of 24 cents per share in 2024.

Valuation: NVTS Trades Above Industry and Peers

Navitas Semiconductor is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NVTS’ forward 12-month P/S ratio sits at 53.78X, significantly higher than the industry’s forward 12-month P/S ratio of 8.54X.

NVTS Forward 12-Month P/S Ratio

Navitas Semiconductor stock also trades at a higher P/S multiple compared with other industry peers, including Broadcom, Marvell Technology and Ambarella. At present, Broadcom, Marvell Technology and Ambarella have P/S multiples of 16.13X, 7.74X and 7.75X, respectively.

Conclusion: Hold Navitas Semiconductor Stock Right Now

Navitas Semiconductor is in a good position to benefit from the fast growth of AI data centers. Navitas Semiconductor is making steady progress through its strategic partnerships, which bodes well for the company’s prospects and supports its long-term growth plans. Furthermore, the company’s GaN and high-voltage SiC products now play a role in NVIDIA’s new 800-volt power setup, which shows that the technology is relevant and in demand.

However, Navitas Semiconductor’s premium valuation warrants a cautious approach to the stock. So, it is prudent for existing investors to remain invested, while new investors should wait for a better entry point.

Navitas Semiconductor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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