Semiconductor Company Navitas’ Stock Climbs as AI War Heats Up
Navitas stock is up as its partnership with Nvidia is helping the company ride the bullish AI market sentiment.
Quick overview
- Navitas (NVTS) stock rose by 2.73% to $7.15 per share, benefiting from its partnership with Nvidia.
- The stock experienced a significant increase of 242% earlier this year due to the collaboration with Nvidia.
- Despite past losses, Navitas is expected to continue climbing as long as Nvidia performs well in the booming AI market.
- Analysts predict substantial growth in the AI sector, which bodes well for Navitas's future as a semiconductor provider.
On Wednesday, Navitas (NVTS) stock rose by 2.73%, climbing to $7.15 per share benefitting from its partnership with Nvidia. The semiconductor company has been working with Nvidia for a few months now.
In late May, Navitas stock jumped from a price per share of $1.90 to $6.50. That incredible 242% stock increase was due to the company partnering with Nvidia. Now, it is up again, but investors should not expect such a meteoric rise as last time.
Navitas develops semiconductors, and their business has been closely aligned with that of Nvidia with their AI processing GPUs. Both of these companies play an integral role in meeting the AI technology needs of many businesses, and now is a good time to be in the AI business.
Is Navitas a “Buy” Right Now?
Long term stock movement for this company shows that they have lost a lot of value over the last two years. However, things changed when they aligned themselves with Nvidia. It looks like Nvidia’s stock is only going up, and they have moved from strength to strength over the last few years.
Even though Navitas has not been able to regain the ground lost over the last couple years, where they are now is a long way from where they were a few months ago. We expect to see them keep on climbing for now, especially as long as Nvidia is doing well and continues their partnership.
The AI market is booming, and most analysts agree that it should be even bigger in the coming years. UN Trade and Development calls AI the “defining technology of our time”. In 2023, the market was worth about $189 billion. This year, it is valued at $244 billion.
In the coming years, AI as a business should become even larger, growing to $800 billion in 2030, according to one estimate, and $4.8 trillion in 2033 by another estimate. Navitas makes semiconductors that are used often in AI components, so their future looks secure. As a stock investment, they are likely a sound one even with the stock value increase a few months ago. There is no brighter star in the AI sky than Nvidia, and Navitas has hitched themselves to Nvidia in a way that should see their profits grow spectacularly over the coming years.
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