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Luke Kawa10/14/25

Navitas Semiconductor spikes after unveiling products “purpose-built” for Nvidia’s upcoming data center architecture

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.

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Traders are pricing in a big swing in AI chip market share to Broadcom from Nvidia

The story within the AI trade lately has been: Google’s a winner, and OpenAI is a... well, to be kind, non-winner.

Companies closely tied to the former, like Broadcom, which codesigns the TPUs that Gemini 3 was trained on, have benefited from their relationship with the hyperscaling search giant. Conversely, Nvidia, which sells to both Google and OpenAI but is besieged with worries about how custom chips might impact its AI market share (and profitability), has been selling off.

“NVDA stock is now trading at its widest ever ~40% discount to AVGO’s current 42x forward PE versus historical -10%/+7% discount/premium over the past 1/2 yrs, respectively,” Bank of America analyst Vivek Arya wrote. “In other words, consensus has already implicitly shifted at least 10+ points of (2H26E/27E) AI market share towards AVGO, conceptually.”

The abrupt shift in valuation amid this divergent price action is reversing course on Monday: Nvidia’s up about 1.5% as of 10:55 a.m. ET, while Broadcom is off 2.6%.

Max Knoblauch3h

Air taxi companies are in the red as Goldman initiates coverage on Archer, Joby, and Beta

Goldman Sachs initiated coverage of the major US air taxi companies on Monday, including Joby Aviation, Archer Aviation, and Beta Technologies. All three are trading down as the bank’s first notes hit investor inboxes.

Though Joby “appears to be in pole position” on certification, analyst Anthony Valentini gave the stock a “sell” rating and a $10 price target — 30% below the value of Joby’s stock at Friday’s close. Valentini wrote that it’s unclear where competitors stand in the process.

Goldman gave Archer a “neutral” rating and an $11 price target, highlighting the company’s ability to cut spending. Beta Technologies, which went public last month, received a “buy” rating and a $47 price target.

Strategy announces $1.44 billion “US dollar reserve” to avoid participating in bitcoin fire sale

The digital treasury company also lowered its outlook for full-year operating income, net income, and earnings per share by more than 90% compared to its October 30 guidance.

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Matt Phillips3h

Crypto-adjacent stocks drop to start the week

Crypto-adjacent shares slid in early trading along with unprofitable tech company shares, as animal spirits ebbed to start the US trading week.

Goldman Sachs’ basket of bitcoin-sensitive stocks — heavily weighted toward Coinbase and treasury companies like MARA Holdings and Strategy — was down more than 3% early, reflecting another tumble in bitcoin overnight, though bitcoin prices stabilized a bit in early US trading. Robinhood Markets — shares of which have at times taken cues from the price of crypto, which is traded on the brokerage app — was also down.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company.)

It would take a talented druid and a flock’s worth of bird entrails to the divine precisely what’s driving the downdraft. But S&P’s recent assessment of the vulnerability of Tether’s stablecoin, USDT — the world’s largest of these supposedly safer forms of crypto — to the bitcoin sell-off might be playing a role.

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Matt Phillips4h

Bank of America joins consensus on quarter-point Fed cut this month

Bank of America analysts clambered aboard the bandwagon expecting a rate cut at the conclusion of the Fed’s two-day meeting next Wednesday. In a note published Monday, they wrote:

“Several factors drive our new call: (1) the jump in the u-rate to 4.44% in the Sep jobs report; (2) Williams’ endorsement of a cut after the data release, until which time markets were leaning toward a hold; (3) weakness in the ADP data and the Beige Book’s labor market assessment; and (4) the fact that Chair Powell hasn’t pushed back — either directly or via the press — against market pricing of an 80%+ chance of a cut going into the blackout period, which began on Saturday.”

Just for the record, the market — and most of Wall Street’s Fed watching class — has largely already come to the same conclusion.

The Fed funds futures market is pricing in a nearly 88% probability of such a snip at the meeting, according to the CME’s FedWatch tool, up from 63% a month ago. That’s also essentially where event contracts are trading.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions. Event contracts trading is offered by Robinhood Derivatives, LLC, a registered futures commission merchant with the CFTC.)

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