Navitas Semiconductor NVTS is making AI infrastructure the main focus of its business. The company has shifted away from its mobile and low-end consumer business and is now focused on high-power markets, including AI data centers and grid infrastructure. Management said AI is driving demand for its gallium nitride (GaN) and silicon carbide (SiC) power chips, while robust demand in AI infrastructure is helping the company return to revenue growth.
The shift is already showing results. First-quarter 2026 revenues increased 18% sequentially to $8.6 million. Revenues from high-power markets grew 35% year over year and now account for most of the company's revenues. Further, the AI infrastructure business, which includes AI data centers and grid infrastructure revenues, grew 50% sequentially, and the company expects this business to continue growing through the rest of 2026.
Navitas Semiconductor is also introducing new products for AI power systems. During the first quarter, it launched a 20-kilowatt GaN platform for AI data centers and new Gen 5 SiC products for AI power supplies. Management said customers are evaluating these products, and several projects have moved from device testing to board-level testing. The company believes offering both GaN and SiC products helps it support a wider range of AI power applications.
Management expects AI infrastructure to remain its largest growth opportunity. As AI data centers require more power, demand for efficient power chips is expected to increase. The company expects second-quarter 2026 revenues to grow 16% on a sequential basis, while gross margins are expected to improve 75 basis points sequentially. As AI infrastructure spending continues to grow, Navitas remains well-positioned to benefit from higher demand for its GaN and SiC products.
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.
In June 2026, ON Semiconductor introduced GaNEXUS, a new GaN power semiconductor portfolio designed for AI data centers, industrial automation, robotics and energy infrastructure applications. This new portfolio includes GaNEXUS FETs with voltage ratings from 40V to 650V, along with 650V GaNEXUS Smart devices that include built-in protection features to simplify system design and improve reliability. The new devices provide faster switching speeds, lower switching losses, higher power density and better thermal performance than conventional silicon-based power devices to help customers build smaller and more efficient power systems.
STMicroelectronics introduced new 700V GaN power semiconductors in May 2026, designed to improve energy efficiency and power density in AI servers, robotics, industrial systems and advanced consumer applications. The new PowerGaN devices are designed for high-voltage power supplies and support reliable operation in high-power applications. The devices should help improve power conversion efficiency beyond what is possible with conventional silicon-based technologies.
NVTS' Price Performance, Valuation & Estimates
Shares of Navitas Semiconductor have rallied 61.6% year to date compared with the Zacks Electronics – Semiconductors industry’s growth of 27.4%.
NVTS YTD Price Return Performance
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From a valuation standpoint, Navitas Semiconductor trades at a forward price-to-sales ratio of 45.27X, significantly higher than the industry’s average of 12.80X.
NVTS Forward 12-Month P/S Ratio
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The Zacks Consensus Estimate for Navitas Semiconductor’s 2026 bottom line is pegged at a loss of 17 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).