Now, listen closely. This week, a company called Navitas Semiconductor (NVTS 4.63%) had a bit of a jump – a whopping 14.8% leap, if you please. It all happened after they showed their report card, and the market, bless its easily-excited heart, got a bit giddy. It’s not so much about what Navitas is currently – a rather small, slightly green sprout – but what it might become. A glorious, towering beanstalk, perhaps? Especially if their partnership with Nvidia doesn’t turn out to be a colossal goose egg.
The GaN and SiC Gobbledygook
These clever chaps are fiddling about with something called gallium nitride (GaN) and silicon carbide (SiC). Sounds like a wizard’s potion, doesn’t it? They used to make these bits for phones and toasters, but now they’ve decided to aim higher. Much higher. They’re eyeing up things like AI data centers, the electricity grid, and all sorts of industrial gizmos. Management, those optimistic souls, reckon this market could grow at a rate of 60-75% per year from 2025 to 2030. A truly scrumptious number, if it were actually based on something solid.
This means, if you follow their sums, they’re hoping for a market worth up to $5.4 billion by 2030. AI data centers will gobble up $2.5 billion of that, and the electricity grid will get a hefty $1.8 billion. The reason for all this grid-boosting? Apparently, those enormous AI computers are thirsty beasts, sucking up power like greedy little piglets. And who’s going to provide the trough? Navitas, naturally, if everything goes swimmingly.
The Nvidia Deal: A Puff of Smoke?
The real reason for this week’s little jig is a partnership with Nvidia. They’re planning to build chips for these new, super-powered data centers that are supposedly launching in 2027. These data centers will use a fancy new voltage system. It’s all very complicated, and frankly, a bit of a gamble. It’s why investors are willing to give this company a market value of over $2 billion, despite the fact that it recently lost $46 million. A curious situation, wouldn’t you agree?
Wall Street’s clever clogs reckon the company won’t actually be making a profit until 2027. But never mind that! Management has promised a little uptick in revenue in early 2026. It’s a tiny glimmer of hope, a little sugar to sweeten the pill. They’re hoping to supply these new data centers with their power chips in 2027. A grand ambition, indeed. But remember, building castles in the air is a delightful pastime… until the wind starts to blow. And this particular castle seems built on rather shaky foundations.
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2026-02-27 18:52