Can NVTS' Pivot to High-Power AI Markets Fuel Long-Term Growth?

Navitas Semiconductor NVTS is shifting its business toward high-power markets, where AI data centers and grid infrastructure are now a key focus. To focus on this shift, the company is reducing its exposure to lower-margin consumer and mobile products to put more resources into high power AI markets to build a more stable and higher-value revenue base over time.

One important step in this shift is the launch of a 10 kW all-GaN DC-DC power platform designed for 800V AI data center systems. The platform delivers 98.5% peak efficiency and supports both 800V and 400V architectures. This platform is designed for real deployment, not just testing and is already being evaluated by data center customers, which shows early customer interest in NVTS' AI power products.

Navitas Semiconductor is also expanding its silicon carbide (SiC) portfolio on the high-voltage side. The company introduced 2300V and 3300V SiC devices aimed at AI data centers, grid power, energy storage, and industrial infrastructure. These products are built for long operating life and higher reliability. Navitas Semiconductor is using extended reliability testing that goes beyond standard industry requirements, which is important for customers running large and critical power systems.

Together, the GaN and SiC products allow NVTS to support power delivery from the grid level down to the AI server. This improves the company’s product coverage and supports higher-value design wins. 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. 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 10.5% in the past three months compared with the Zacks Electronics – Semiconductors industry’s growth of 6.6%.

NVTS 3-month Price Return Performance

From a valuation standpoint, Navitas Semiconductor trades at a forward price-to-sales ratio of 48.81X, significantly higher than the industry’s average of 8.4X.

NVTS Forward 12-Month P/S Ratio

The Zacks Consensus Estimate for Navitas Semiconductor’s 2026 bottom line is pegged at a loss of 21 cents per share. The estimates for 2026 loss per share have remained unchanged 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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