Quick Summary
- Shares of Navitas Semiconductor (NVTS) surged 20% during Monday’s after-hours session.
- The chipmaker secured selection for the Army’s ALATTIS initiative, focused on manufacturing 10 kV silicon carbide semiconductors.
- Premarket action on Tuesday saw shares climb an additional 12% to $13.15, though still significantly below the May peak exceeding $30.
- This win arrives following challenging months marked by quarterly deficits and legal battles with Wolfspeed (WOLF).
- Navitas has not revealed the monetary value of the military agreement.
Shares of Navitas Semiconductor (NVTS) experienced a dramatic 20% surge during Monday’s after-hours session. The rally followed news that the chipmaker secured a new contract from the United States Army.
Navitas Semiconductor Corp, NVTS
The upward momentum continued into Tuesday’s premarket hours, with shares gaining another 12% to reach $13.15. Despite this rally, the stock remains far from its brief May summit above $30.
The military has chosen Navitas to participate in ALATTIS, an acronym representing Accelerated, Large-Area, 10 kV SiC IGBT.
This initiative will finance development of ultra-high-voltage silicon carbide semiconductors. These components operate at 10,000 volts, significantly exceeding conventional power semiconductor specifications.
The Army Research Laboratory oversees this initiative, operating within the framework of the US Army Combat Capabilities Development Command.
Navitas emerged victorious over competing American silicon carbide manufacturers. Military officials cited the firm’s advanced high-voltage capabilities and U.S.-based production facilities as deciding elements.
Military Objectives Behind the Contract
The primary objective involves establishing and validating a domestic production pipeline for these sophisticated semiconductors. Work encompasses everything from initial design through manufacturing and final testing phases.
Development targets include 10 kV silicon carbide insulated-gate bipolar transistorsācommonly known as IGBTs. The scope extends to complementary PiN diode technologies as well.
These components target deployment in mission-essential defense systems. The Joint Experimentation and Technology Accelerator provides additional program support.
Navitas chose not to reveal specific financial terms of the agreement. No projections regarding potential revenue impact have been released.
Challenging Period for the Chipmaker
This military contract arrives during a turbulent period for Navitas. The company reported financial losses in multiple quarters throughout the current year.
The firm remains embroiled in intellectual property litigation against competitor Wolfspeed (WOLF). This ongoing legal confrontation has negatively impacted market confidence.
Shares had rocketed beyond $30 during May as market participants wagered aggressively on power semiconductors connected to artificial intelligence infrastructure. Values have declined substantially since that peak.
Siddarth Sundaresan, who serves as Navitas Chief Technology Officer, characterized the military selection as a significant achievement for the company’s high-voltage semiconductor initiatives. He referenced over two decades of research and development investments in this sector.
The firm’s GeneSiC silicon carbide product portfolio encompasses voltage ratings ranging from 650 volts through 6.5 kilovolts. According to company records, Navitas pioneered multiple product categories, including 6.5 kV thyristors launched in 2010.
Additional innovations include 10 to 15 kV PiN diodes released in 2012, followed by 6.5 kV silicon carbide MOSFETs in 2021. These technologies underpin its defense and industrial semiconductor operations.
Currently, market participants continue viewing artificial intelligence data center applications as the primary catalyst for Navitas stock performance. The military contract establishes an additional revenue stream alongside existing operations.
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