NVTS Bets on AI Data Centers: Will This Fuel Long-Term Growth?

Navitas Semiconductor NVTS is shifting its focus toward AI data centers. The company is moving away from lower-margin mobile and consumer products and putting more effort into high-power markets, such as AI data centers, performance computing, energy and grid infrastructure, and industrial electrification.

AI data centers are pushing power demand higher. This is where Navitas Semiconductor's gallium nitride (GaN) and high-voltage silicon carbide (SiC) products can help improve efficiency and power density in these high-power systems. The company also highlighted that it offers both GaN and SiC solutions across the full power path from the grid to the GPU.

Navitas Semiconductor’s inclusion in NVIDIA’s next-generation 800-volt DC “AI factory” ecosystem bodes well for the company's prospects as well. NVIDIA has named Navitas Semiconductor as a power selector partner for this architecture. This matters because it positions NVTS in a large, fast-growing market where power design is becoming a priority.

NVTS is building products for these high-power needs. The company has begun sampling mid-voltage GaN devices at 100 volts, which target the final stages of power conversion inside AI servers. Navitas Semiconductor has already started sampling 2.3 kV and 3.3 kV SiC modules for grid and energy storage systems to support rising power demand from AI infrastructure.

Still, meaningful revenues 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 above-mentioned factors demonstrate how NVTS is making a long-term bet on AI data center power upgrades. Navitas Semiconductor 's future growth will depend on whether it can execute fast enough, win multi-generation designs, and scale supply to benefit as the AI power cycle ramps up.

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. 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 rallied 51.8% in the past six months compared with the Zacks Electronics – Semiconductors industry’s growth of 27.9%.

NVTS 6-month Price Return Performance

From a valuation standpoint, Navitas Semiconductor trades at a forward price-to-sales ratio of 61.19X, significantly higher than the industry’s average of 8.72X.

NVTS Forward 12-Month P/S Ratio

The Zacks Consensus Estimate for Navitas Semiconductor’s 2026 bottom line is pegged at a loss of 19 cents per share. The estimates for 2026 loss per share have narrowed by 2 cents over the past 60 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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