Shares of chip design start-up Navitas Semiconductor (NASDAQ: NVTS) have rallied over 30% following its first-quarter 2023 earnings update. This story is starting to sound familiar: A small company that's betting big on electric vehicles (EVs) and the power grid puts up stellar sales growth, and the market hands it a win.  

Not for entirely bad reasons, though. EVs are quickly displacing traditional internal combustion engines in new-car sales, the power grid needs more efficient infrastructure, and mobile (think 5G phones and wireless network equipment) is power-hungry and needs new chip technology, too. 

But before you chase this hot chip stock of the moment, consider a few important items first.

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Source Fool.com