The artificial intelligence (AI) infrastructure is set to become a major long-term growth catalyst for Navitas Semiconductor NVTS as hyperscalers are increasing power requirements inside next-generation data centers. This shift is creating a large and fast-growing opportunity for the company’s gallium nitride (GaN) and silicon carbide (SiC) power semiconductor portfolio.
The company estimates the AI data center market alone could represent a $1.4-$2.5 billion serviceable addressable market (SAM) opportunity by 2030. It also projects GaN and SiC adoption in AI data centers could grow at a massive 66-87% CAGR between 2025 and 2030, driven by the industry’s push toward higher efficiency and power density.
The transition toward 800-volt high-voltage direct current (HVDC) architectures is central to this opportunity. Traditional AI server racks typically consume less than 250 kilowatts of power. But newer AI systems are evolving toward multi-megawatt racks that require significantly more advanced power conversion technologies.
Navitas projects that future AI infrastructure deployments could generate total GaN and SiC semiconductor content of roughly $25,000-$35,000 per megawatt. GaN could contribute around $10,000-$15,000 per megawatt, while SiC could account for another $15,000-$20,000.
The power conversion requirements inside AI data centers are becoming increasingly complex. Current architectures primarily rely on SiC for high-power AC/DC conversion. However, as hyperscalers move toward placing DC-DC conversion directly inside server racks, Navitas believes GaN adoption could accelerate sharply due to its higher switching frequency and power-density advantages.
Momentum already appears to be building. In first-quarter 2026, AI infrastructure revenues— including AI data centers and grid infrastructure— grew 50% sequentially from the fourth quarter of 2025, with growth coming in ahead of expectations.
Importantly, Navitas believes its ability to offer both GaN and SiC products gives it a strategic advantage as hyperscalers increasingly look for suppliers capable of supporting multiple layers of next-generation AI power architectures.
Competitive Landscape: ON & STM
OnSemiconductor ON is a notable competitor in AI power infrastructure, backed by its expanding silicon carbide and GaN portfolio. Its AI data center revenues grew more than 30% sequentially in first-quarter 2026 and more than doubled year over year, driven by adoption across AI power architectures. OnSemiconductor now expects AI data center revenues to double again in 2026, highlighting growing competition in next-generation power semiconductors.
STMicroelectronics STM is positioning itself to benefit from rising AI infrastructure spending through its silicon photonics, BiCMOS, GaN and SiC technologies. The company’s partnership with Amazon Web Services aims to support demand for faster and more energy-efficient optical interconnects used in AI workloads. STMicroelectronics expects data center revenues to exceed $500 million in 2026 and surpass $1 billion in 2027, reflecting the growing scale of AI-related infrastructure opportunities.
NVTS' Price Performance, Valuation & Estimates
Shares of Navitas Semiconductor have rallied roughly 200% year to date compared with the industry’s growth of 40%.
From a valuation standpoint, Navitas Semiconductor trades at a forward price-to-sales ratio of 91.78X, significantly higher than the industry’s average of 9.33X.
The Zacks Consensus Estimate for Navitas’ 2026 and 2027 bottom line is pegged at a loss of 17 cents/share and 15 cents/share, respectively. See how the loss estimates have been revised over the past 90 days.
Navitas 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).