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Navitas Dives 35% on AI Bubble Fears
6 Dec
Summary
- Navitas stock plunged 35.1% in November due to AI market concerns.
- The company is pivoting from mobile to AI data centers and high-power solutions.
- Navitas partners with Nvidia on next-gen 800V data centers for 2027.
Navitas Semiconductor experienced a significant 35.1% stock decline in November, driven by increasing market apprehension surrounding the artificial intelligence sector. Investors are wary of a potential bubble forming from extensive capital spending on AI, which could negatively impact companies like Navitas.
The company is undergoing a strategic pivot, deprioritizing lower-margin, short-lifecycle projects in mobile and certain Chinese markets. Instead, Navitas is redirecting its resources and attention to high-power solutions for durable markets, including AI data centers, performance computing, and energy infrastructure. A key initiative is its collaboration with Nvidia on developing solutions for 800V high-voltage direct current data centers, slated for 2027.
Despite market anxieties about AI growth sustainability, Navitas is positioned as one of only two companies offering a full spectrum of power solutions from grid conversion to processor power. Management anticipates substantial profitability contributions from these new ventures starting in 2027, signaling confidence in its future direction.
