Navitas Semiconductor: Record High of $29.25 on Nvidia Pact, But Share Count Balloons by 3.3 Million

Navitas Semiconductor hits all-time high of $29.25 after Nvidia AI data center deal, but issues 3.3M new shares from 2021 SPAC merger, masking weak fundamentals.

Navitas Semiconductor capped the week with a stunning 20% single-day surge to close at an all-time high of $29.25, powered by a deepening partnership with Nvidia that positions the chipmaker inside next-generation AI data centers. Yet beneath the headline euphoria, the company quietly issued nearly 3.3 million new shares — a dilution event tied to a merger agreement left over from its 2021 IPO.

The rally was fueled by Navitas’s role in developing GaN- and SiC-based chips for 800-volt DC architectures that will power Nvidia’s Rubin Ultra GPUs. The technology promises higher efficiency and power density for the massive energy demands of AI workloads, a market the street increasingly views as a competitive moat. Investors brushed aside the capital increase entirely, sending the stock up roughly 37% on the week and more than 300% year to date.

The Price of the Past

This week’s issuance of 3.3 million Class A shares fulfills obligations under what the company calls “Triggering Event I,” a contractual clause from the SPAC merger that brought Navitas public in 2021. Former shareholders can claim additional shares through October 2026, with a total cap of 10 million shares — subject to hitting certain stock price targets. A separate settlement with the original SPAC sponsor, Live Oak, transfers about 726,000 shares without further lock-up restrictions, while roughly 116,000 shares were relinquished. Both parties have waived future legal claims.

Revenue Reality vs. Stock Frenzy

Despite the market’s celebration, Navitas’s underlying financials paint a more nuanced picture. First-quarter revenue came in at $8.6 million, a sequential improvement of 18% but a decline from the $14 million reported a year earlier. The non-GAAP gross margin edged up to 39.0% from 38.7% in the prior quarter. The high-power segment — which includes AI data centers and industrial electrification — grew roughly 35% year on year, offering a glimpse of the pivot’s traction.

The company guided for roughly $10 million in second-quarter revenue, beating the analyst consensus of $8.93 million. That forecast, along with the Nvidia announcement, has clearly reset expectations, but the real-world numbers remain far below the valuation implied by a $5.7 billion market cap.

Catalysts on the Horizon

On the technology front, Navitas is gaining visibility beyond its core power chips. A licensing agreement with India’s Cyient Semiconductors will see the first locally branded GaN chips for telecom and industrial markets. At the PCIM 2026 exhibition, Navitas is showcasing everything from 1,200-volt components to a 20-kilowatt board that achieves 97.5% peak efficiency — a design that could eliminate several power-conversion stages inside AI server racks.

The trading action suggests institutional buyers are piling in: Friday’s volume ran 36% above the daily average. Yet with analyst price targets from Needham ($21) and Baird ($20) already well behind the current price, the stock is pricing in a much faster ramp than the sell-side has modeled.

The Next Test

Looking ahead, management takes the stage at the Craig-Hallum conference on May 28, where investors will expect updates on the high-power pipeline. The chart bears watching, too: if support around $24 gives way, a rapid pullback could follow. For now, the market is betting that Navitas’s AI pivot will outrun a growing share count and a still-modest revenue base — a bet that just hit a new high.