Why Navitas Semiconductor Stock Soared Today

Navitas Semiconductor (NASDAQ: NVTS) saw big gains in Tuesday's trading thanks to Trump-related catalysts. The company's share price ended the day's trading up 9.2%. Meanwhile, the S&P 500 index ended the day up 0.8%, and the Nasdaq Composite closed out the session up 0.6%.

Navitas gained ground early in today's trading on news that President Trump was reversing an executive order on artificial intelligence (AI) that was enacted under the Biden administration. The company's share price got another boost later in the day following reports of a new AI investment initiative led by Trump.

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Navitas stock jumps after Trump cancels Biden's AI requirements

During his tenure, President Biden issued an executive order that required companies researching and developing AI to submit any findings that could be of interest along national security, economic, and other lines to the federal government. The order also required AI applications to uphold a series of other principals outlined by the Biden administration.

During the 2024 election campaign, the official Republican Party platform had stated that Biden's executive order on AI would be rescinded under a Trump presidency because it limited innovation. President Trump signed his own order removing the previous guidelines this morning, and Navitas Semiconductor and other companies with exposure to AI trends saw bullish pricing action in response.

Trump is reportedly on the verge of a new AI investment project

Later in Tuesday's trading, Bloomberg published a report stating that President Trump would soon announce a new investment initiative to bolster the U.S. position in AI. The president is expected to announce a joint venture that includes Softbank, OpenAI, and Oracle that will kick off with $100 billion in initial investments. The door is reportedly being left open for up to $500 billion over the next four years, and much of the investment is expected to focus on AI data centers.

Navitas is a specialist in the semiconductor space and recently demonstrated its gallium nitride (GaN) power integrated circuits and silicon carbide (SiC) technologies for data centers. With the potential for hundreds of billions of investment dollars to pour into domestic data-center expansion under Trump's new term, Navitas could be poised to see some significant demand tailwinds.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.