NVTS Aims at AI Energy Needs: Will This Fuel Long-Term Gains?

Navitas Semiconductor NVTS is trying to reposition itself around high-power markets, and its inclusion in NVIDIA’s new 800-volt artificial intelligence (AI) factory ecosystem is an important step. The new architecture shifts data center power distribution from traditional AC/DC stages to a high-voltage DC approach that requires faster, more efficient power electronics. This creates an opening for Navitas Semiconductor’s Gallium Nitride (GaN) and high-voltage Silicon Carbide (SiC) technologies, both of which are now part of the NVIDIA-led ecosystem.

In the third quarter of 2025, Navitas Semiconductor highlighted that it is one of the few companies offering both GaN and SiC solutions across the full power path, all the way from the grid to the graphics processor units (GPU) . The company has begun sampling mid-voltage GaN devices at 100 volts, which target the last stage of power conversion inside AI servers. It is also sampling 2.3 kV and 3.3 kV SiC modules for grid and energy storage applications that support these new data center designs.

Still, meaningful revenue from AI data centers will not show up before 2027. Navitas Semiconductor expects 2026 to be a transition year, with small but growing shipments tied to traditional server power supplies. The larger opportunity depends on how fast hyperscalers adopt the 800-volt architecture and whether Navitas Semiconductor  can secure multi-generation design wins. 

For now, Navitas Semiconductor is walking away from low-margin mobile products to focus its resources on high-power markets. This shift lowers near-term revenue but could strengthen long-term positioning. The company's success will be dependent on whether it can execute fast enough to convert its NVIDIA partnership and customer engagements into real share gains once the new AI power architecture starts to scale.

How Competitors Fare Against Navitas Semiconductor

The company faces strong competition from Wolfspeed WOLF and ON Semiconductor ON in the race to supply high-voltage solutions for 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.

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 DC power systems for next-generation AI data centers.

NVTS' Price Performance, Valuation & Estimates

Shares of Navitas Semiconductor have skyrocketed 133.1% year to date compared with the Zacks Electronics – Semiconductors industry’s growth of 33.6%.

NVTS YTD Price Return Performance

From a valuation standpoint, Navitas Semiconductor trades at a forward price-to-sales ratio of 44.59X, significantly higher than the industry’s average of 7.27X.

NVTS Forward 12-Month P/S Ratio

The Zacks Consensus Estimate for Navitas Semiconductor’s full-year 2025 bottom line indicates that loss per share will narrow to 21 cents from 24 cents incurred in the year-ago quarter. The consensus mark for 2026 is also pegged at a loss of 21 cents per share. The estimates for 2025 loss per share have narrowed down by a penny over the past 30 days, while the same for 2026 have increased by 2 cents over the same time frame.

 
Navitas Semiconductor currently carries a Zacks Rank #2 (Buy). 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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