ALTIUS RESEARCH

OUSTER (OUST)

Initial position: $12.86
Current price: $20.14

COMPANY SUMMARY: Ouster, Inc. is a San Francisco-based company that develops and manufactures high-resolution digital LiDAR (Light Detection and Ranging) sensors and software solutions. These sensors provide advanced 3D vision for applications in autonomous vehicles, robotics, industrial automation, smart infrastructure, defense and mapping.

CORE THESIS:

• Unusual options activity: 2000 Jan26' $25 calls bought on 5/28. $60k worth of calls between $15-20 strike bought on 6/10.
• Political tailwinds: The U.S. government has raised concerns about Chinese LiDAR companies, citing potential national security risks that could compromise U.S. infrastructure and military data. Bipartisan leaders from the House Select Committee on China have recommended restrictions on Chinese LiDAR firms, a move supported by Ouster’s lobbying efforts. Ouster is the only major U.S.-based digital LiDAR provider. This could lead to preferential treatment for Ouster in U.S. defense and infrastructure contracts.
• There is significant potential for partnerships with Big Tech companies as they increasingly include LiDAR technology in mobile devices for augmented reality and 3D data, as outlined by Ouster here.
• Technical setup: Chart just broke above the 200 MA, and historically, has responded strongly to the upside shortly after. Starting to see significant increase volume/call flow.

STRATEGY: Our trading strategy for OUST is to initiate a medium size equity position and add on pullbacks as long as it holds the significant EMA's. We also initiated a medium size call position in the Aug15 $16 calls.

CATALYST: Headline: 'Ouster Digital Lidar Approved by Defense Department for Unmanned Aircraft'

Ouster announced that its OS1 digital lidar has been vetted and approved by the Department of Defense (DOD) for use in unmanned aerial systems (UAS).

NAVITAS (NVTS)

Initial position: $2.77
Current price: $9.02

COMPANY SUMMARY: Navitas Semiconductor (Torrance, CA) specializes in advanced power management solutions, focusing on gallium nitride (GaN) and silicon carbide (SiC) technologies. Navitas develops high-efficiency, high-performance power chips that enable smaller, faster, and more energy-efficient systems for AI data centers, electric vehicles (EVs), renewable energy, mobile chargers, and consumer electronics. Key products include GaNFast™ power ICs and GeneSiC™ MOSFETs, targeting hyperscale data centers.

CORE THESIS:

• Navitas' gallium nitride (GaN) and silicon carbide (SiC) chips allow for high-frequency switching and thermal efficiency, reducing copper usage by up to 45% and improving end-to-end power efficiency by up to 5%. This is essential for handling the massive power demands of modern AI data centers, which require gigawatts of power, compared to traditional 54V systems limited to a few hundred kilowatts.
• Navitas is currently valued at ~600m and any significant partnership announcement with a major chip company could send this quickly into the billion-dollar+ valuation range.
• Technical setup: Technically speaking, the chart is pretty rough. Lower lows continually, need news that will change the trajectory of this chart.

STRATEGY: It may take some time to secure contracts and market their technology so our strategy with NVTS is to buy and hold equity. We initiated a small-medium size position and will add on pullbacks at least until we start to hear some contract/partnership announcements.

CATALYST: Headline: 'NVIDIA Selects Navitas to Collaborate on Next Generation 800 V HVDC Architecture'

Navitas Semiconductor announced a collaboration with Nvidia to develop an 800V high-voltage direct current (HVDC) architecture for AI data centers, powering Nvidia’s Kyber rack-scale systems and GPUs like the Rubin Ultra.

(Special congratulations to everyone who stuck in this trade for the last few months. We knew the GaN and SiC technology offered significant innovation in the semiconductor space, and it was just a matter of time until a major player took notice.)

This information is for general informational purposes only and does not constitute financial advice. It is not intended to be a substitute for professional financial advice, and you should not rely on it as such. Always consult with a qualified financial advisor to discuss your specific financial situation before making any financial decisions. There are inherent risks involved in financial decisions, and you alone assume the sole responsibility of evaluating those risks.