New Nvidia partner Navitas Semiconductor jumps 47% despite stock offering

Quotes on chipmaker Navitas Semiconductor have gained 9% in premarket trading today, May 28, following a 47% surge yesterday, despite the announcement of a new share offering. The stock had been rising rapidly after the company revealed a collaboration with Nvidia, though analysts warn it may retreat in the coming months.

Yesterday, Navitas Semiconductor stock soared 47% to close at $6.50 per share, having risen as high as 70% interday, before extending the gains in premarket trading today, when it was up more than 9%, having climbed above the $7.10 per share mark, a level it had not seen in a regular session in over a year.

Earlier in the day yesterday, the company announced plans to sell up to $50 million of shares. It said it may offer and sell Class A shares “from time to time” with Jefferies acting as its agent. Typically, an equity sale would send a stock down, but Navitas keeps rising, as the Motley Fool notes.

The rally began on May 22, with a single-day gain of 164%, after the company announced a partnership with Nvidia, the global leader in AI processors and GPUs. Investopedia believes that expectations for Nvidia’s first-quarter earnings, scheduled to be released after the market close today, may also have supported Navitas stock this week. Yesterday, it closed with a market capitalization of around $850 million.

Navitas announced it would supply Nvidia with energy-saving components that significantly reduce power consumption and improve AI processor efficiency. Nvidia plans to use Navitas semiconductors to power its Rubin Ultra server racks, which are expected to launch no sooner than the second half of 2027.

Navitas has a major competitive advantage in the materials used in its chips, according to MarketBeat. While the industry is still dominated by silicon semiconductors, Navitas uses silicon carbide and gallium nitride, creating chips that are fundamentally different and more advanced than standard ones, the outlet notes.

Navitas chips are well suited for AI data centers, of which Nvidia has taken notice, MarketBeat adds. With Navitas chips, Nvidia plans to create a next-generation 800V HVDC architecture, which is expected to improve power efficiency by 5% and reduce maintenance costs by 70%, due to fewer PSU failures, as noted in the companies’ joint statement.

Before the Nvidia deal was announced, Navitas stock had been losing value. Even after yesterday’s sharp rise to $6.50 per share, it is still half its 2021 IPO price of $13 per share.

The deal with Nvidia represents a “major breakthrough” for the smaller company that could pave the way to other large clients, Freedom Broker notes — but also cautions that Navitas’s financials remain weak. In the first quarter, its revenue fell almost 40% year over year to $14 million, while the net loss came in at $16.83 million.

Analysts expect revenue to increase significantly in 2026 and 2027, with $450 million in design wins already secured. However, given the stock’s big rally, it is likely to see a pullback in the coming months, MarketBeat believes.