NVTS Targets AI Data Centers: Can it Capitalize on the 800-Volt Shift?

Navitas Semiconductor (NVTS) is shifting its focus to AI data centers as power needs are rising fast. AI processors are utilizing much more power than traditional systems. Additionally, industry estimates show power demand for AI could grow from 7 gigawatts in 2023 to over 70 gigawatts by 2030. This presents a big opportunity for Navitas Semiconductor to capitalize on this shift.

Currently, data centers operate at 48 volts, but NVIDIA has announced plans for 800-volt architectures to support next-generation workloads. Navitas believes that this shift will create a big need for advanced power chips made from gallium nitride (GaN) and silicon carbide (SiC). These materials work better at high voltage and make systems more efficient.

Navitas Semiconductor expects three stages in the new 800-volt setup, which includes converting grid power to 800 volts, then 800 volts to 48 volts, and finally 48 volts to 12 volts or less for processors. Each step will need GaN and SiC chips. Therefore, the company estimates that this could become a $2.6 billion yearly market by 2030. NVTS is already working on products for all three steps and plans to send final samples to customers later this year.

For now, Navitas Semiconductor expects its third-quarter revenues to be down due to tariff risks in China. However, looking ahead, these changes will help Navitas Semiconductor grow in the long term as AI data centers and energy systems expand. Though the Zacks Consensus Estimate for NVTS’ 2025 revenues indicates a year-over-year decline of 35%, it is expected to make a significant recovery in 2026 with an estimated growth of 23.2%.

How Competitors Fare Against Navitas Semiconductor

Navitas Semiconductor faces strong rivals, such as Wolfspeed (WOLF) and ON Semiconductor (ON), in the race to supply high-voltage solutions for AI data centers.

ON Semiconductor is expanding its SiC portfolio and targeting cloud infrastructure customers with integrated power modules. ON Semiconductor has also partnered with NVIDIA to accelerate the move to 800 Volts Direct Current power systems for next-generation AI data centers.

Wolfspeed is a key supplier for high-voltage applications in the SiC ecosystem. Moreover, Wolfspeed is building a $3 billion Mohawk Valley fab to supply SiC for high-voltage systems, including AI data center power infrastructure.

NVTS' Price Performance, Valuation & Estimates

Shares of Navitas Semiconductor have surged 80.2% year to date compared with the Zacks Electronics – Semiconductors industry’s growth of 16.5%.

NVTS YTD Price Return Performance

From a valuation standpoint, Navitas Semiconductor trades at a forward price-to-sales ratio of 22X, higher than the industry’s average of 8.66X.

NVTS Forward 12-Month P/S Ratio

The Zacks Consensus Estimate for Navitas Semiconductor’s fiscal 2025 bottom-line indicates that loss per share is expected to narrow to 22 cents from 24 cents in the year-ago quarter. The consensus mark for 2026 is pegged at a loss of 19 cents per share, indicating further improvement from 2025. The estimates for 2025 and 2026 bottom line have both been revised downward over the past 30 days.

Navitas Semiconductor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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