Navitas Semiconductor Stock Jumps 6.1% on Nvidia Licensing News

NEW YORK, NY — Navitas Semiconductor shares surged by 6.1% in Tuesday’s trading session, driven by news that Nvidia received licensing approval to sell its H20 artificial intelligence processor in China. The increase in Navitas stock comes amid a 0.4% decline for the S&P 500 and a 0.1% gain for the Nasdaq Composite.

The stock reached a peak of 10.7% before settling down. Over the last three months, Navitas has seen a remarkable 259% increase, primarily due to its partnership with Nvidia, a leader in AI hardware.

Nvidia confirmed today that it received notification from the Trump administration granting the necessary licensing approval for its H20 processor. This news has not only propelled Nvidia’s valuation to record highs but has also positively affected other semiconductor companies, including Navitas.

In its latest quarterly report, Navitas projected sales between $14 million and $15 million for the quarter ending in June. The company’s guidance indicated an adjusted gross margin of approximately 38.5% for the same period, with earnings results expected next month.

With a market capitalization now at about $1.2 billion, Navitas is valued at around 19 times its expected sales for the year. Thanks to its association with Nvidia, the company is currently enjoying a premium valuation, although market observers caution that its stock remains risky. Experts believe that the partnership could open significant opportunities for Navitas in the gallium nitride and silicon carbide power semiconductor markets, particularly in data centers.