Why Navitas Semiconductor Stock Is Up Today

Key Points Navitas wants to create a grid-to-chip power delivery system. To do so, it needs Claros' technology. 10 stocks we like better than Navitas Semiconductor › Shares of Navitas Semiconductor (NASDAQ: NVTS) rose on Tuesday after the designer of next-generation power chips struck a deal to acquire Claros, a provider of innovative energy management solutions for artificial intelligence (AI) data centers. Image source: Getty Images. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Terms of the deal Navitas is offering to purchase Claros for up to $232.8 million, with $216 million paid at closing in cash and stock, and the remainder paid if certain business milestones are achieved. Breaking through the power wall The most advanced AI chips are so powerful that traditional energy delivery systems can't keep up. These ultra-high-performance chips require massive amounts of electricity and near-instant response times. "The future of AI depends on delivering thousands of amps to increasingly power-hungry processors with unprecedented speed and precision," Navitas CEO Chris Allexandre said. Claros stacks multiple power technologies into a single, compact package and places it closer to AI chips. In turn, the power they require needs to travel only millimeters instead of inches. That might not sound like much of a difference, but it's enough to slash response times and heat production, while boosting efficiency and power density, thereby significantly reducing the costs of operating an AI data center. Navitas estimates that acquiring Claros will more than double its addressable market to over $8 billion. The deal is projected to close by the end of the year, subject to regulatory approval. Should you buy stock in Navitas Semiconductor right now? Before you buy stock in Navitas Semiconductor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Navitas Semiconductor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $431,488 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,279,584 !* Now, it’s worth noting Stock Advisor’s total average return is 958 % — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 25, 2026. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

Navitas wants to create a grid-to-chip power delivery system.

Shares of Navitas Semiconductor (NASDAQ: NVTS) rose on Tuesday after the designer of next-generation power chips struck a deal to acquire Claros, a provider of innovative energy management solutions for artificial intelligence (AI) data centers.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Navitas is offering to purchase Claros for up to $232.8 million, with $216 million paid at closing in cash and stock, and the remainder paid if certain business milestones are achieved.

The most advanced AI chips are so powerful that traditional energy delivery systems can't keep up. These ultra-high-performance chips require massive amounts of electricity and near-instant response times.

"The future of AI depends on delivering thousands of amps to increasingly power-hungry processors with unprecedented speed and precision," Navitas CEO Chris Allexandre said.

Claros stacks multiple power technologies into a single, compact package and places it closer to AI chips. In turn, the power they require needs to travel only millimeters instead of inches.