Navitas Semiconductor (ticker: NVTS) shares soared 19.98% on Friday, closing at $29.25, before edging down to $29.01 in after-hours trading ahead of the U.S. Memorial Day holiday. The stock has gained approximately 37% over the past week, rising from $21.32 the previous Friday, as investors continue to pile into the power-chip maker for its exposure to the AI data center market.
Trading volume on Friday reached 51.18 million shares, significantly above average, as the stock touched a 52-week high of $29.50. The broader Nasdaq Composite index added 0.19% on the day, highlighting the outsized move in Navitas shares relative to the market.
AI Data Center Play
Navitas is a relatively small player in the semiconductor industry, but traders have increasingly viewed it as a levered bet on the growing demand for more efficient power delivery in AI data centers. The company specializes in power semiconductors made from gallium nitride (GaN) and silicon carbide (SiC), which enable faster switching and higher voltage operation than traditional silicon-based chips.
The company last week announced plans to showcase its GaN and SiC products at the PCIM 2026 trade show in Germany. Among the highlights are a 20-kilowatt 800-volt-to-6-volt power board targeting 97.5% peak efficiency, and a 10-kilowatt 800-volt-to-50-volt platform with 98.5% peak efficiency. These products are aimed at the high-power segment, a key growth area for the company.
Financial Performance and Outlook
In its May 5 earnings report, CEO Chris Allexandre described the first quarter as a "return to top-line sequential growth." CFO Tonya Stevens cited "strong momentum and growth" in the company's high-power focus areas. Revenue for the first quarter came in at $8.6 million, up 18% from the previous quarter but down from $14.0 million a year ago. Navitas guided for second-quarter revenue of $10.0 million, plus or minus $0.5 million.
The company is shifting its focus away from lower-power mobile and consumer products toward higher-margin, high-voltage applications, a transition that investors are closely watching.
Capital Structure Moves
Navitas shares also received a boost from a capital-structure development. In a May 22 filing, Navitas and Live Oak Sponsor Partners II reached an agreement on sponsor earnout shares from the company's SPAC-era transaction. Under the deal, 726,225 shares will be transferred and are no longer subject to vesting or forfeiture terms. An additional 421,000 shares had already been marked as earned, while 115,775 shares were forfeited.
However, the company also filed this month for an at-the-market offering of up to $125 million, which allows Navitas to sell new shares into the market gradually. This potential dilution could weigh on the stock price, as investors factor in the possibility of future share sales.
Analyst Consensus and Valuation
Wall Street analysts have yet to catch up to the recent surge in Navitas shares. According to MarketBeat, the consensus rating remains "Hold," with an average target price of $12.87—far below Friday's closing price. Out of nine analysts, two rate the stock as "Sell," five as "Hold," and only two as "Buy."
The disconnect between the stock price and analyst targets suggests that much of the recent rally may be driven by momentum and speculation rather than fundamental changes in the company's outlook.
Market Context and Risks
Navitas's move on Friday stood out from the broader chip sector. Power Integrations rose 0.5%, Wolfspeed edged up 0.1%, while Nvidia slipped 1.9%. The divergence underscores that Navitas's rally was not simply a reflection of sector-wide strength.
Investors will have their first chance to react to Friday's surge on Tuesday, when U.S. markets reopen after the Memorial Day holiday. The stock could face a test of conviction if the revenue ramp appears too slow to justify the price move, or if concerns about dilution from the at-the-market offering spook buyers.
Management is scheduled to meet with investors at the Craig-Hallum Institutional Investor Conference on May 28 and at Evercore's Global TMT Conference on June 3, where they are expected to reinforce their growth narrative around AI and high-voltage power solutions.
