TLDR
- Shares of Navitas Semiconductor (NVTS) surged 20% during after-hours trading on Monday.
- The company won a spot in the US Army’s ALATTIS program focused on creating 10 kV silicon carbide semiconductors.
- Premarket trading on Tuesday saw shares climb an additional 12% to reach $13.15, though still far from the May peak above $30.
- This win arrives following a challenging period marked by quarterly losses and legal battles with Wolfspeed (WOLF).
- The company hasn’t revealed the monetary value of the Army agreement.
Shares of Navitas Semiconductor (NVTS) experienced a dramatic 20% surge during Monday’s after-hours session. The spike followed news that the chipmaker secured a significant contract from the United States Army.
Navitas Semiconductor Corp, NVTS
The upward momentum continued into Tuesday’s premarket session, with shares gaining another 12% to hit $13.15. Despite this rally, the stock remains significantly below its brief May peak of over $30.
The military branch chose Navitas to participate in the ALATTIS initiative. This acronym represents Accelerated, Large-Area, 10 kV SiC IGBT.
This initiative will provide funding for research into ultra-high-voltage silicon carbide power semiconductors. The chips target a 10,000-volt rating, substantially exceeding conventional power semiconductor specifications.
The Army Research Laboratory serves as the project sponsor. The initiative operates under the umbrella of the US Army Combat Capabilities Development Command.
Navitas emerged victorious over competing American silicon carbide manufacturers for this award. Military officials cited the firm’s advanced high-voltage capabilities and US-based production facilities as determining factors.
Military Objectives Behind the Contract
The primary objective involves establishing and validating a domestic production pipeline for these sophisticated semiconductors. The initiative encompasses design work, manufacturing processes, and comprehensive device testing.
The scope includes development of 10 kV silicon carbide insulated-gate bipolar transistors, commonly known as IGBTs. Additionally, it encompasses associated PiN diode technologies.
These components target deployment in critical military applications. The Joint Experimentation and Technology Accelerator provides additional support for the initiative.
Navitas chose not to reveal the financial scope of the agreement. The firm hasn’t provided projections regarding potential revenue generation from this contract.
Navigating Challenging Times
This contract win arrives during a turbulent period for Navitas. The semiconductor manufacturer reported quarterly losses during the first part of this year.
The company remains embroiled in intellectual property litigation against competing chipmaker Wolfspeed (WOLF). This ongoing legal conflict has negatively impacted investor confidence.
Share prices had skyrocketed beyond $30 during May as market participants speculated heavily on power semiconductor demand linked to artificial intelligence data centers. The stock has since experienced a steep decline.
Siddarth Sundaresan, Chief Technology Officer at Navitas, characterized the award as a significant achievement for the firm’s high-voltage semiconductor initiatives. He referenced over two decades of research and development in this technology sector.
The firm’s GeneSiC silicon carbide product portfolio covers voltage ranges from 650 volts extending to 6.5 kilovolts. The company claims first-to-market status for multiple innovations, including 6.5 kV thyristors launched in 2010.
Additional pioneering products include 10 to 15 kV PiN diodes released in 2012 and 6.5 kV silicon carbide MOSFETs launched in 2021. These technologies underpin the company’s defense and industrial semiconductor operations.
Currently, market analysts continue to regard AI data center demand as the primary catalyst for Navitas stock performance. The military contract establishes an additional revenue stream complementing existing commercial operations.
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