New Copper Tariffs Could Push Nvidia Closer To Navitas
Summary
- Navitas is the unlikely beneficiary of the new 50% US copper tariff; its gallium nitride tech is set to reduce copper usage in data centers.
- The Nvidia collaboration is a major long-term catalyst; it carries a $450M pipeline that could drive significant revenue and margin expansion by FY2026.
- Navitas has shown improved financial discipline, reducing cash burn, and GaN can deliver high gross margins amid a new demand and possible future licensing deals.
- With shares down 18% from recent highs, I see current levels as an attractive entry ahead of Q2'25 earnings and bullish management guidance.
- I hereon share my sentiment on Navitas stock and why I see more upsides ahead.
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