Is It Too Late to Buy Navitas Semiconductor (NVTS) Stock After a 240% Rally?

Navitas Semiconductor (NASDAQ:NVTS) has kept on rallying, and Wall Street looks increasingly bullish. NVTS stock started rallying hard starting May 22, which is exactly 10 days after we called it a potential 10-bagger here on MoneyMorning.

However, the rally has come well before even the bulls would have expected, and this is due to a splashy power‑supply deal with Nvidia (NASDAQ:NVDA), a queue of AI‑driven design wins, and fresh partnerships in hydrogen‑fuel charging.

Is there still room for more upside, or should you lock in profits? Let’s take a look.

What Sparked the Triple‑Digit Run

Navitas announced that its GaN and SiC chips will underpin Nvidia’s new 800V high‑voltage direct‑current architecture for rack‑scale AI servers in late May. The headline more than doubled the stock in a single day. Follow-on coverage showed that major companies beyond Nvidia were now evaluating it as a partner.

Traders love scarcity, and Navitas is the only pure‑play GaN/Sic house listed in the United States, which helps explain the extreme price response.

Regardless, Q1 revenue fell 39.5%, and this company is nowhere near profitable. IT does have cash, but it has also recently filed to sell up to $50 million in new shares. Dilution is an ever‑present risk for unprofitable semiconductor upstarts that must fund capacity, inventory, and R&D before volume ramps.

Should You Buy or Sell NVTS Stock Now?

Although I see more long-term upside, I don’t think you should chase NVTS stock at the moment. I like the technology and the end‑market tailwinds. GaN and SiC are the future of power electronics because physics favors them over silicon. Nvidia’s stamp of approval is valuable social proof. However, Wall Street seems to be buying more for the hype and not for the fundamentals.

I tagged it a buy back when it was $2 per share. At $6.7, the downside risk now is not worth the upside potential. I would look to buy nearer the 50‑day moving average or after a double‑digit pullback.