Why Nvidia-Backed Navitas Semiconductor Is Soaring Today

Shares of Navitas Semiconductor (NVTS 11.59%) are soaring on Tuesday. The company's stock jumped 15.7% as of 1:02 p.m. ET. The move comes as the S&P 500 (^GSPC 0.74%) gained 0.6% and the Nasdaq Composite (^IXIC 1.05%) jumped 1%. The innovative semiconductor company, which uses gallium nitride (GaN) and silicon carbide (SiC) instead of the standard silicon, announced a new partnership today, as well as presented at a prominent industry conference. A new partnership The company will partner with BrightLoop to bring its advanced chip technology to BrightLoop's latest series of hydrogen fuel-cell chargers. The charges are designed to support efficient and green power to heavy-duty agricultural transportation equipment. Given the enormous power requirements of equipment of this scale, the deal is further validation of Navitas' approach and technology. The company also presented today at the Baird Global Consumer, Technology & Services Conference 2025. CEO Gene Sheridan laid out his vision for the company's future, focusing on its shift toward high-voltage power solutions -- the same solutions that helped it ink the BrightLoop deal. Image source: Getty Images. Another massive partnership The positive news comes soon after Navitas announced that Nvidia had selected it to help power its next-generation artificial intelligence (AI) data center systems. The news sent Navitas stock flying, not only because of the direct monetary value of the deal, but because of the incredible validation of its technology. If Nvidia is backing Navitas, it's likely others will follow in its footsteps and invest in GaN and SiC chip solutions from Navitas. I think Navitas stock is worth owning; the seal of approval from Nvidia is a game changer, and the company's balance sheet is solid, with minimal debt.