The AI chip mania just welcomed a new champion. Navitas Semiconductor Corp (NASDAQ:NVTS) has ballooned more than 105% in the past month, and its torrid surge has turbocharged one of the year’s most sensational ETF moves. The Tradr 2X Long NVTS Daily ETF (BATS:NVTX), which provides exposure to growth-frenzied semiconductor stocks, has soared an eye-watering 258% in the past month alone, and 405% since its Sept. 9 launch, riding Navitas’s surge.
What Happened?
Navitas sparked market excitement by revealing a portfolio of gallium nitride (GaN) and silicon carbide (SiC) power chips purpose-built for NVIDIA’s AI hardware. The chips are said to deliver improved power efficiency and performance, a crucial development as larger, more computationally intensive AI models emerge. Navitas also announced a deal with Power Chip to expand its manufacturing presence, signaling ambitions that extend far beyond niche player status.
Investors retaliated in kind. Even after Rosenblatt analyst Kevin Cassidy downgraded Navitas from Buy to Neutral, increasing his price target to $12 from $4, the stock continued to rise.
For ETFs such as NVTX, timing couldn’t be more opportune. While traders rush to every AI hardware edge, funds that follow semiconductor pioneers have emerged as magnets for speculative capital. The spillover effect affects wider chip ETFs such as the VanEck Semiconductor ETF (NASDAQ:SMH), Global X Semiconductor ETF (NASDAQ:SOXX), and Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ), many of which have been boosted by revived investor demand for the AI supply chain.
But the 405.5% jump in NVTX since its inception does suggest unsustainable momentum. Such steep advances usually are a sign of speculative overdrive — particularly when one investor fuels much of the flow. But in a Street starved for the “next NVIDIA,” Navitas’s tale reminds us how quickly ETFs can amplify nascent AI trends well ahead of Street consensus catching up.
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