Nvidia’s Data Center Partners: Navitas Soars While ON Semiconductor Lags

Nvidia's selection of Navitas Semiconductor and ON Semiconductor as partners for next-generation data center development has sparked divergent market reactions. Navitas, despite being unprofitable until at least 2027, has seen its stock surge 89% year-to-date. Meanwhile, ON Semiconductor—a fundamentally stronger company trading at attractive valuations—has watched its shares decline nearly 19%.

The disparity highlights market myopia toward ON Semiconductor's silicon carbide (SiC) chip business. As the EV market downturn pressures automotive revenues—ON Semi's Core end market—investors overlook the company's long-term positioning in power semiconductors. Current weakness stems from cyclical automotive sector pressures rather than structural deficiencies.

Navitas' momentum reflects speculative appetite for Nvidia-adjacent plays, while ON Semiconductor's selloff appears overdone given its established manufacturing capabilities and eventual automotive market recovery. The partnership validates both firms' technological relevance in data center infrastructure builds.