Why Nvidia Partner Navitas Semiconductor Surged in the First Half of 2025

Key Points

• A new generation of data centers is driving growth among the technology suppliers essential to their development.

• Nvidia's partnership is the key to Navitas' growth prospects in the data center market.

• 10 stocks we like better than Navitas Semiconductor ›

Shares of Navitas Semiconductor (NASDAQ: NVTS) soared by 83.5% in the first half of 2025, according to data provided by S&P Global Market Intelligence. The move stems from the announcement that Navitas is partnering with Nvidia (NASDAQ: NVDA) to develop solutions for the next generation of data centers set to launch in 2027.

Nvidia and the new generation of data centers

It's no secret that the burgeoning demand from AI applications is creating unprecedented strain on global data center capacity, which is putting pressure on power grids, networks, and data center infrastructure. That's where the new data centers come in.

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In a nutshell, the new 800-volt high voltage direct current (HVDC) data centers will offer a new architecture that converts 13.8 kV alternating current (AC) grid power to 800-volt HVDC at the perimeter, and then from 800-volt HVDC to the lower voltages needed to run graphics processing units (GPUs) in the IT rack.

Traditional data centers convert 13.8 kV AC to lower AC voltages, then to a lower DC voltage at the IT rack, and finally to a lower AC voltage to power GPUs.

Nvidia believes these new data centers offer an improved architecture, reduce conversion steps (which will enhance efficiency), reduce copper requirements, increase reliability, decrease cooling requirements, and lower maintenance costs by up to 70%.

Navitas' partnership with Nvidia

The semiconductor company's role in 800-volt HVDC data centers comes in two areas. First, its silicon carbide chips are essential in converting grid power to 800-volt HVDC at the perimeter.

Image source: Getty Images.

Second, its gallium nitride (GaN) chips are used to switch from 800-volt HVDC down to the lower voltages necessary at the IT rack because GaN can switch at a higher frequency than silicon, allowing for smaller and more efficient power conversion.

These advantages are why Nvidia named Navitas as a technology partner in the new data center technology.

Image source: Getty Images.

Where next for Navitas Semiconductor?

With the new data centers set to be operational in 2027, investors can expect an aggressive ramp in Navistar sales in 2026. Indeed, Wall Street is penciling in 50% and 40% growth in sales in 2026 and 2027. And with investment in data centers and the AI applications that are fueling demand only in their early innings, investors can expect a long pathway of growth ahead for Navitas Semiconductor.

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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.