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TORRANCE, Calif. - Navitas Semiconductor (NASDAQ: NVTS), currently trading at $1.63 and holding more cash than debt on its balance sheet, has announced a new strategic partnership with GigaDevice to advance power management solutions for AI data centers, electric vehicles (EVs), solar energy, and energy-saving systems. According to InvestingPro analysis, the company maintains a healthy current ratio of 5.69, indicating strong short-term financial stability. The collaboration aims to integrate Navitas' gallium nitride (GaN) power ICs with GigaDevice's microcontrollers (MCUs) in a joint R&D lab, leveraging both companies' expertise in power conversion and control technologies.
The partnership is set to create a joint-lab that will focus on combining Navitas' GaNFast ICs with GigaDevice's MCUs to optimize the fast-switching characteristics required for various applications. This integration is expected to enhance the adoption of GaN and silicon carbide (SiC) technologies in higher-power markets by accelerating R&D for next-generation, high-efficiency power solutions.
GigaDevice, a leader in the high-performance MCU market in China, has been instrumental in various sectors with its MCU series, which offers high processing power and storage capacity. The company's products have been widely adopted, with over 2 billion units shipped for applications in power systems, industrial automation, automotive electronics, and motion control.
Navitas Semiconductor is recognized for its GaN power technology and GaNFast power ICs, which are known for enabling high-frequency and high-efficiency power conversion. Navitas has made significant strides in AI data center solutions and has supplied its GaN ICs to all of the top 10 smartphone and notebook OEMs. Their technology has been used in Dell's family of AI notebooks and Changan Automobile's first commercial GaN-based On-Board Charger for EVs.
The signing ceremony in Shanghai on April 8th, 2025, was attended by senior executives from both companies, including Vincent Li, GigaDevice Senior Vice President, CTO, and General Manager of MCU Business Unit, and Charles Zha, VP and GM of Navitas Asia-Pacific. They discussed the collaboration strategy and operational models for the joint lab. With a market capitalization of $310.56 million and 13 additional InvestingPro Tips available, investors can access comprehensive analysis and detailed metrics through the Pro Research Report, available exclusively on InvestingPro.
This partnership aligns with Navitas' strategy to support next-generation clean-energy solutions and GigaDevice's focus on digital power as one of its core strategic markets. Both companies are looking forward to delivering innovative power management solutions that promise greater efficiency and energy savings.
The information in this article is based on a press release statement.
In other recent news, Navitas Semiconductor has been the subject of several analyst revisions and company updates. Morgan Stanley downgraded the company's stock from Equalweight to Underweight and lowered the price target to $1.50, citing concerns over slower revenue growth and potential financial challenges. In contrast, Baird maintained an Outperform rating on Navitas, although it reduced the price target to $4.00, reflecting optimism about the company's expanding customer pipeline and future market introductions. Meanwhile, Jefferies adjusted its price target to $2.50 and maintained a Hold recommendation, pointing to ongoing inventory challenges and a potential cyclical bottom in the first quarter.
Navitas Semiconductor also announced the appointment of KPMG LLP as its new independent auditor, replacing Moss Adams LLP. The company acknowledged material weaknesses in its internal control over financial reporting, which are being addressed. Additionally, Navitas revised its bylaws to shorten the deadline for director nominations at annual stockholders' meetings, aiming to streamline the nomination process. These developments highlight the company's ongoing efforts to manage its financial and governance structures amid a challenging market environment.
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