AI infrastructure stocks received a boost today after power components and systems company Vicor (VICR 11.54%) raised its second-quarter revenue guidance from $126 million to $142 million. The news was enough to send Vicor stock soaring, and it also sent Navitas Semiconductor (NVTS 18.23%) shares higher by as much as 15.6% at 11 a.m. today.
Why Vicor's results read across well for Navitas
As outlined recently, Navitas is a company whose stock is highly sensitive to developments in AI data center infrastructure spending. The reason is that management has deliberately pivoted the company away from its traditional core markets of power chips for mobile phone charging and consumer products toward high-power applications. Indeed, Navitas is a partner of Nvidia in developing next-generation data center power chips.
NASDAQ: NVTS
Key Data Points
Therefore, when Vicor, whose advanced products focus on data center and hyperscaler segments according to SEC filings, raises its guidance to reflect stronger hyperscaler spending, it signals positive momentum for Navitas.
Where next for Navitas
The company is loss-making and will be so until 2030, according to the Wall Street consensus from S&P Global Market Intelligence. Given that timeline toward profitability, the stock is highly likely to fluctuate heavily with every twist and turn in the debate over whether AI infrastructure spending is in its early or mid innings.
