Navitas Semiconductor (NVTS) shares soared to a year-to-date high on June 3rd after the company teamed up with the Nvidia (NVDA) MGX™ Ecosystem to accelerate 800 VDC AI infrastructure.
The deal centers on NVTS supplying “power delivery boards” that eliminate the 48V intermediate bus converter stage within compute server trays.
It targets 97.5% peak efficiency at 1 MHz switching frequency and a power density of 2,100 W/in³, the press release added.
Including today’s surge, Navitas stock is trading at nearly 4x its price at the start of this year (2026).
Why Nvidia MGX news matters for Navitas stock
NVTS shares’ explosive rally this morning makes sense since landing a role inside Nvidia’s MGX ecosystem is not a trivial marketing win – it’s a technical endorsement from the world’s largest AI hardware firm.
By removing the 48V intermediate bus converter stage entirely, Navitas’s GaNFast tech delivers a more efficient power path from the 800V rack directly to the GPU level – exactly what hyperscalers are demanding as AI data center power budgets balloon into the gigawatt range.
CEO Chris Allexandre has deliberately pivoted the business away from “low-margin” mobile and consumer segments toward this market.
And NVDA showcase is the clearest external validation yet that the strategy is working – and that Navitas is not merely riding the AI wave from a distance, but is embedded in it.
NVTS shares are egregiously overvalued
On the surface, Navitas’ fundamentals appear impressive; the company’s AI market revenue came in up some 35% year-on-year in the first quarter, and Q2 guidance implies another 16% sequential growth.
But context matters enormously. The MGX announcement that’s driving NVTS higher today is an ecosystem showcase – not a disclosed design win with binding revenue commitments.
Yet, the company is demanding investors to pay more than 125x sales at current levels. For context, SpaceX – even at a valuation of $1.75 trillion – would command a sales multiple of just over 100x.
In other words, the company seems to be doing enormously well (financially), and NVDA’s vote of confidence matters a lot.
But disciplined investors must also give weight to what they’re paying to own Navitas Semiconductor.
Note that the firm’s relative strength index (RSI) has also soared into the late 60s, reinforcing that the stock is now approaching “overbought” territory and is, therefore, ripe for profit-taking.
How Wall Street recommends playing Navitas Semiconductor
All in all, NVTS stock is not enjoying a growth premium; it’s experiencing speculative fever, and that’s why Wall Street firms recommend caution in playing it at current levels.
The consensus rating on Navitas Semiconductor sits at “hold” only – with the mean price target of less than $14 indicating its share price could be cut in half, or even more, over the next 12 months.
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