Wall Street Warns of Trouble for High-Flying AI Stocks Navitas and Symbotic
Navitas Semiconductor and Symbotic, two growth stocks that more than tripled in value this year, face potential downturns as Wall Street analysts sound alarms. Navitas, a GaN and SiC semiconductor developer, saw its shares surge 710% since April amid excitement around its power solutions for Nvidia's next-gen AI infrastructure. Symbotic's parallel rally now confronts skepticism as macroeconomic headwinds gather.
The stocks' meteoric rises—fueled by AI hype—may prove fragile. Regional banking instability and tightening credit conditions threaten to deflate speculative tech valuations. Navitas' gallium nitride technology, while promising for high-voltage AI applications, faces execution risks as Nvidia's power architecture demands escalate.