IFNNY - Navitas: High Potential For AI Data Centers But Big China Exposure
2024-07-07 11:57:44 ET
Summary
- Navitas Semiconductor's share price has been declining despite increasing revenues, and the suitability of its power chips for AI data centers.
- The company specializes in GaN technology for power devices used in data centers, smartphones, and more, with potential for growth in high-demand markets.
- Near-term weakness in EV and solar markets, could impact Navitas' revenue growth and stock performance.
- The most important risk appears to be connected to the revenue exposure to China in case trade tensions with the U.S. escalate after November's elections.
Navitas Semiconductor's (NASDAQ: NVTS ) share price has followed a downtrend as shown below despite revenues trending higher as per the blue chart. ...
Navitas: High Potential For AI Data Centers But Big China Exposure