NVTS vs. LITE: Which Semiconductor Stock Has an Edge Right Now?

By Om Jaiswal | December 18, 2025, 10:04 AM

Navitas Semiconductor NVTS and Lumentum Holdings LITE are two key players operating in the semiconductor industry. They benefit from the growing demand for data centers, artificial intelligence (AI) infrastructure, and energy-efficient technologies.

Navitas Semiconductor focuses on Gallium nitride (GaN) and Silicon carbide (SiC) chips used in next-generation AI data centers and energy systems. Its products are used in fast chargers, electric vehicles, and data centers. Lumentum designs and sells optical and photonic components, such as lasers and optical networking products, which help move data quickly through fiber-optic networks used by cloud and AI data centers.

Both NVTS and LITE are positioned to benefit from long-term growth in data centers and advanced technology infrastructure. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.

The Case for Navitas Semiconductor Stock

Navitas Semiconductor is trying to reposition itself around high-power markets, and its inclusion in NVIDIA’s new 800-volt 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 GaN and high-voltage 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, from the grid to the 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.

Moreover, the company is witnessing growing customer interest in its GaN and high-voltage SiC products, especially as hyperscalers and GPU vendors work on new power architectures for AI data centers. Navitas Semiconductor’s customers require faster development and deeper collaboration, where the company’s GaN and high-voltage SiC technologies will play a pivotal role to support these new-age AI architectures, driving the company to accelerate its shift to these fast-growing high-power markets.

However, the company’s decision to deprioritize its lower-margin China mobile business weighs on its near-term prospects. The company is walking away from low-margin mobile products to focus its resources on high-power business. In the third quarter of 2025, revenues were about $10.1 million, down more than 50% from last year due to weak demand and strong pricing pressure in the mobile business, especially in China.

Furthermore, for the fourth quarter of 2025, management projects revenues to be around $7 million, which means another sequential decline. The company is reducing exposure to low-margin mobile and consumer customers, cutting channel inventory, and consolidating distributors, all of which reduce near-term revenues.

The Zacks Consensus Estimate for Navitas Semiconductor’s full-year 2025 total revenues is pegged at $45.46 million, indicating a year-over-year decline of 45.4%. The consensus mark for 2026 indicates revenues to decline 15.6% year over year to $38.36 million.