A tiny semiconductor company is more than doubling after becoming an Nvidia supplier

Advanced Micro Devices is jumping (again) in premarket trading after Oracle said it will deploy 50,000 AMD AI chips in its data centers starting in the second half of 2026.

Financial terms of the agreement were not disclosed.

One could say AMD’s pact with OpenAI that was announced last week is already paying dividends: AMD securing OpenAI as a customer, which itself is responsible for Oracle’s massive backlog in cloud computing capacity, means Oracle is now more comfortable using AMD as a source of AI chips.

Or, given the very peculiar terms of that AMD-OpenAI agreement, a cynic might suggest it’s yet another example of circular deals in the AI space, and that both AMD announcements may be about the same thing!

Today’s revelation didn’t spark any additional move lower for Nvidia, which has been trading in the red ahead of the open.

Rare earth stocks are having a blast at the moment. Small stocks in the critical and rare earth minerals sector — the latest flashpoint of US-China trade relations — have ripped, but the trade went into overdrive to start this week.

After JPMorgan announced a $10 billion plan to directly invest in key industries like critical minerals, the sector spiked again on Monday, as traders responded to the news and continued to bet on the US government’s ongoing support for the nascent sector. In the announcement, Jamie Dimon, JPMorgan’s CEO, wrote that “the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products, and manufacturing.”

One name in particular, MP Materials, soared 21% yesterday, with an eye-watering $4.7 billion worth of the stock trading in a single session. Ironically, that’s even more than the $3.3 billion that changed hands in JPMorgan stock.

Still finding gold

Remarkably, the rare earth trade doesn’t seem to be losing any steam this morning.

As of 7 a.m. ET, MP Materials is up 5%. With risk-off sentiment dominating the premarket session — the US and China just rolled out their tit-for-tat port fees — the one winner from the trade tensions seems to still be the rare earth stocks. Indeed, other names in the industry are also trading higher, most notably United States Antimony Corp., Critical Metals, American Battery Technology Co., and USA Rare Earth.

Shares of tiny chip firm Navitas Semiconductor are spiking after management unveiled products “purpose-built for Nvidia’s 800 VDC AI factory architecture, delivering breakthrough efficiency, power density, and performance.”

Nvidia is aiming to transition to 800-volt direct current power for its Kyber racks, which it expects to start deploying in 2027, and once again name-dropped Navitas as a partner in providing silicon in a blog post on Monday.

Navitas’ integrated circuits and silicon carbide chips are being positioned as ways to help make data center environments more space and power efficient.

“As NVIDIA drives transformation in AI infrastructure, we’re proud to support this shift with advanced GaN and SiC power solutions that enable the efficiency, scalability, and reliability required by next-generation data centers,” said Navitas CEO and President Chris Allexandre.

Navitas more than doubled on May 22 after announcing that it had earned a place in Nvidia’s supply chain, gaining 164% in its best session on record.

Its worst session since that revelation came in the wake of its second-quarter earnings report, where management provided an outlook for third-quarter sales that was both lower than expectations and lower than what they’d booked in Q2.

The takeaway back then was simply that the Nvidia halo effect wouldn’t be translating into actual sales imminently. The market’s takeaway today seems to be increased confidence in an eventual financial benefit from Navitas’ relationship with the $4 trillion chip designer.