Navitas Semiconductor NVTS is expanding its artificial intelligence (AI) infrastructure portfolio with the acquisition of Claros. Navitas Semiconductor recently completed the acquisition, adding Claros’ intelligent voltage regulator (IVR) technology to its existing GaN and high-voltage SiC portfolio. The deal is aimed at strengthening Navitas Semiconductor’s power delivery solutions for AI infrastructure and extending its capabilities from the grid to the xPU.
Claros’ IVR technology is expected to help Navitas Semiconductor address the final stage of power delivery to the processor. This is important as AI systems require higher power levels and more efficient power delivery. The acquisition also enables vertical and embedded power architectures, expanding Navitas Semiconductor’s ability to support different AI infrastructure designs. As a result, Navitas Semiconductor expects the deal to complete its high-power portfolio and strengthen its grid-to-xPU strategy.
The acquisition also fits with Navitas Semiconductor’s broader strategy of becoming a high-power company focused on AI infrastructure. The company has been expanding its GaN and high-voltage SiC products to address power requirements across the grid, data center and rack. Adding IVR technology allows Navitas Semiconductor to cover another part of the power-delivery chain and could increase the amount of power content it can provide to customers.
The Claros acquisition gives Navitas Semiconductor a broader portfolio to address the growing power requirements of AI infrastructure. By combining IVR technology with its existing GaN and SiC solutions, Navitas could strengthen its position across the grid-to-xPU power chain and create additional opportunities as AI data center power demand increases. The Zacks Consensus Estimate for 2026 and 2027 indicates revenue growth of around 4.1% and 44.6%, respectively.
How Competitors Fare Against NVTS
The company faces strong competition from ON Semiconductor ON and STMicroelectronics STM in the race to supply high-voltage solutions for AI data centers.
ON is expanding its presence in AI data center power as the industry moves toward 800V DC architectures. The company expects AI data center revenues to more than double in 2026, while silicon carbide revenues from AI data center applications are expected to grow nearly 60% year over year. The company expects its high-voltage revenues to accelerate as data centers adopt 800V DC distribution, increasing demand for its power solutions across the AI power tree.
STMicroelectronics is another semiconductor company gaining from rising AI data center power demand. The company reported 50% year-over-year growth in communication equipment and computer peripherals in the second quarter, supported by its AI-related customer programs. STM is already supplying microcontrollers, high-voltage power and analog products for the power stage of cloud AI systems and is building a pipeline for low-voltage power solutions. The company expects data center revenues to exceed $1 billion in 2026 and $2 billion in 2027 if current trends continue.
NVTS' Price Performance, Valuation & Estimates
Shares of Navitas Semiconductor have rallied 67.6% year to date compared with the Zacks Electronics – Semiconductors industry’s growth of 39.4%.
NVTS YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Navitas Semiconductor trades at a forward price-to-sales ratio of 48.71X, significantly higher than the industry’s average of 5.26X. The Zacks Value Score of F suggests that NVTS stock is overvalued.
NVTS Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Navitas Semiconductor’s 2026 bottom line is pegged at a loss of 14 cents per share. The estimates for 2026 loss per share have remained unchanged over the past 30 days.
Image Source: Zacks Investment Research
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).