Navitas Strengthens GaN and SiC Footprint With Major Alliances

Navitas Semiconductor NVTS is actively forging strategic collaborations and partnerships across the power electronics ecosystem, accelerating the adoption of its gallium nitride (GaN) and silicon carbide (SiC) technologies in AI data centers, electric vehicles (EV), mobile charging and renewable energy applications. Accordingly, in June, Navitas entered into partnership with BrightLoop to develop hydrogen fuel-cell chargers for heavy-duty agricultural transportation equipment. Navitas’ Gen 3 ‘Fast’ (G3F) SiC MOSFETs will be paired with BrightLoop’s Power Flow Processor technology to deliver exceptional performance in both AC and DC applications, such as energy management scenarios for fuel cells and heavy-duty applications, as well as high voltage network adaptation.

In May, Navitas collaborated with NVIDIA NVDA to support the development of NVIDIA’s new 800V high-voltage DC (HVDC) architecture. NVIDIA’s 800V HVDC approach is designed for next-generation AI data centers, including systems like NVIDIA Rubin Ultra. NVIDIA 800V HVDC architecture will improve end-to-end power efficiency up to 5%, reduce maintenance costs by 70%, and lower cooling costs, all using Navitas’ GaNFast and GeneSiC power technologies.

Additionally, Navitas inked a strategic R&D partnership with GigaDevice to create a joint lab for integrating and tailoring Navitas’ GaNFast ICs and GigaDevice’s Microcontrollers Unit products (“MCU”). Navitas’ next-generation, clean-energy GaNFast technology, when integrated with GigaDevice’s advanced high-performance MCU products, will drive innovative advancements in intelligent and efficient power management solutions.

Also, Navitas and Great Wall Power have teamed up to launch a 2.5kW ultra-high power density DC-DC converter for AI data centers. Great Wall Power has created an extremely compact and efficient 2.5 kW DC-DC power module for AI data centers. The module is powered by Navitas’ NV6169 GaNSense GaN power IC. This partnership aims to meet the growing power and efficiency needs of AI computing while reducing space, energy use and carbon emissions.

Navitas’ Global Competitors

In May, Marvell Technology MRVL joined forces with NVIDIA to integrate NVIDIA’s NVLink Fusion into Marvell’s custom XPU platform silicon, enabling ultra-high bandwidth (up to 1.8 TB/s bidirectional) for advanced AI data center deployments. Additionally, Marvell renewed and expanded its multi-year agreement with Amazon Web Services (“AWS”) to supply custom AI-focused semiconductors, spanning optical digital signal processors, PCIe retimers, data center interconnect optical modules and Ethernet switching silicon solutions. Marvell also leverages AWS cloud infrastructure to enhance its electronic design automation workflows. 

Texas Instruments TXN is involved in a long-term collaboration with Delta Electronics, focused on EV onboard charging and power solutions. Following the collaboration, they established a joint innovation lab in Taiwan to enhance EV charger performance, resulting in smaller chargers (a 30% reduction) and increased efficiency (up to 95%), utilizing TXN’s C2000 MCUs, GaN technology, gate drivers and EMI solutions. Meanwhile, LeddarTech Holdings Inc. and Texas Instruments have entered into a strategic collaboration and a software license agreement to enable a comprehensive, integrated platform solution for advanced driver assistance systems and autonomous driving markets. Under the license agreement, Texas Instruments made advanced royalty payments to catalyze joint commercialization.

NVTS’ Stock Price Performance

Year to date, shares of Navitas have surged 72.3%, outperforming the industry and S&P 500 composite’s growth of 14.8% and 6.3%, respectively.

Navitas’ Expensive Valuation

NVTS stock trades at a forward 12-month price-to-sales (P/S) of 14.5X, significantly higher than the industry average of 7.5X.

NVTS Consensus Estimate Trend

The Zacks Consensus Estimate for NVTS’ loss per share has moved south over the past 60 days.

NVTS’ Zacks Rank

NVTS stock currently carries a Zacks Rank #4 (Sell). 

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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