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Baron Discovery Fund Trimmed Navitas Semiconductor Corporation (NVTS) Due to Various Concerns

Baron Funds, an investment management company, released its “Baron Discovery Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund (Institutional Shares) returned 4.57% underperforming the 7.58% return for the Russell 2000 Growth Index. The firm is optimistic about the Fund’s prospects for 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron Discovery Fund featured stocks like Navitas Semiconductor Corporation (NASDAQ:NVTS) in the first quarter 2024 investor letter. Founded in 2013, Navitas Semiconductor Corporation (NASDAQ:NVTS) designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators. On May 14, 2024, Navitas Semiconductor Corporation (NASDAQ:NVTS) stock closed at $4.00 per share. One-month return of Navitas Semiconductor Corporation (NASDAQ:NVTS) was 2.56%, and its shares lost 51.98% of their value over the last 52 weeks. Navitas Semiconductor Corporation (NASDAQ:NVTS) has a market capitalization of $732.248 billion.

Baron Discovery Fund stated the following regarding Navitas Semiconductor Corporation (NASDAQ:NVTS) in its first quarter 2024 investor letter:

Navitas Semiconductor Corporation (NASDAQ:NVTS) is a leader in gallium nitride (GaN) power semiconductors and a smaller player in silicon carbide (SiC) power semiconductors. Shares fell during the quarter on lowered guidance. Despite the softer near-term outlook, the company highlighted several design wins across mobile, data center, renewable energy, and vehicle electrification that are expected to ramp later in 2024 and into 2025 and should support above-industry growth. The company’s monolithically integrated GaN power chips provide greater reliability and performance compared to discrete power devices. It recently purchased a co-packaged silicon controller to drive additional integration and performance. Its SiC products also offer better performance than peers and robustness across many applications. We expect Navitas to gain share in the rapidly growing GaN and SiC power semiconductor markets over time, driven by its superior technology, especially with its high-power GaN product in data center, solar, and electric vehicles just starting to ramp.

We reduced our position in Navitas Semiconductor Corporation, a provider of analog power management semiconductors, as we grew concerned about the near-term prospects for consumer spending (communications charging segment), some increased Chinese competition, and the mixed messages coming out of the auto industry (which is a new growth area for the company). We continue to really like the company’s products and are watching the environment closely.”

Aerial view of a large solar panel array under construction in a rural China landscape.

Navitas Semiconductor Corporation (NASDAQ:NVTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Navitas Semiconductor Corporation (NASDAQ:NVTS) at the end of the fourth quarter which was 18 in the previous quarter.

In another article we discussed Navitas Semiconductor Corporation (NASDAQ:NVTS) and shared the list of stocks Jim Cramer recommended selling, but billionaires love them. Baron Discovery Fund added additional shares of Navitas Semiconductor Corporation (NASDAQ:NVTS) to its portfolio in the third quarter 2023.  In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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