Navitas Semiconductor NVTS and Vicor Corporation VICR are benefiting from the growing demand for artificial intelligence (AI) infrastructure, which is increasing power requirements in data centers. NVTS focuses on Gallium nitride (GaN) and Silicon carbide (SiC) chips used in next-generation AI data centers and energy systems, while VICR develops power modules and power delivery solutions that help improve power efficiency in AI servers and high-performance computing systems.
Both NVTS and VICR are positioned to benefit from long-term growth in data centers and advanced technology infrastructure. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for Navitas Semiconductor Stock
Navitas Semiconductor is positioning itself to benefit from the growing shift toward 800-volt (800V) power architecture in AI data centers. As AI workloads become more power-intensive, hyperscalers are moving to higher-voltage power systems to improve efficiency and support higher power levels. This shift is expected to increase the demand for NVTS' GaN and SiC power chips and create a significant growth opportunity for the company's high-power business.
The move to 800V power systems increases the amount of GaN and SiC content used in each AI system. Management expects power supply units to increase from about 5-10 kilowatts to 18.5 kilowatts for NVIDIA systems and up to 25-30 kilowatts for other hyperscalers. As power levels increase, Navitas expects the amount of SiC content per rack to increase by about 2.5 times. GaN demand is expected to rise as more power conversion moves inside AI racks, where higher efficiency and faster switching are needed. These factors create a larger revenue opportunity per AI system for NVTS.
To support this opportunity, Navitas has launched new GaN and SiC products for AI power systems. During the first quarter of 2026, the company launched a 20-kilowatt 800V-to-6V GaN platform for AI data centers and introduced new Gen 5 SiC products for AI power supplies. The above-mentioned products are being tested by OEMs and power supply vendors, and several projects have moved from device-level testing to board-level testing, bringing them closer to commercial production.
However, NVTS’ “Navitas 2.0” strategy involves moving away from mobile charging and consumer electronics toward higher-power AI and industrial markets. While this may improve long-term growth, it also introduces meaningful near-term revenue volatility. The company is effectively walking away from markets where it already had product traction and revenue history in exchange for newer markets with longer design cycles and more demanding qualification requirements. This transition could create revenue volatility over the next several quarters.
The Case for Vicor Stock
AI data center investments are creating growth opportunities beyond chipmakers, and Vicor is benefiting from this trend. While much of the attention has been on the company's high-performance computing business, its industrial segment is also seeing higher demand as semiconductor manufacturers expand production to support AI infrastructure.
During the first-quarter 2026 earnings call, management said its broad industrial business delivered a strong quarter. The company's top industrial customers in the automated test equipment and semiconductor manufacturing equipment markets continued to benefit from the AI data center build-out, leading to strong order activity. Further, the company is winning next-generation platforms with its factorized power system solutions, which should support future revenue growth.
The growing production of AI chips is increasing the need for advanced testing equipment. Vicor's current multipliers, which are used in ASIC and memory test heads, continue to hold a strong competitive position because of their high current density, low noise and thin package design. As AI processors and high-bandwidth memory production increase, demand for these testing solutions is also likely to rise.
The strength in the industrial business is contributing to Vicor's overall growth. Bookings remained strong across its high-performance computing, industrial, and aerospace and defense markets during the first quarter. The company reported a book-to-bill ratio of more than 2 and a 70% sequential increase in its one-year backlog. The above-mentioned factors show that if AI infrastructure spending remains strong, Vicor's industrial business should become a key contributor to the company's long-term growth.
NVTS vs. VICR: Earnings Estimate Trend
The earnings estimate revision trend for the two companies reflects that analysts are turning more bullish toward VICR.
NVTS Earnings Estimate Revision Trend
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VICR Earnings Estimate Revision Trend
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NVTS vs. VICR: Price Performance and Valuation
Year to date, shares of NVTS and VICR have surged 86% and 137.8%, respectively.
NVTS Vs. VICR: YTD Price Return Performance
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Currently, VICR is trading at a forward sales multiple of 14.66X, lower than NVTS’ forward sales multiple of 52.42X. VICR’s reasonable valuation makes it more attractive for investors looking for value and stability.
NVTS vs. VICR: Forward 12-Month P/S Ratio
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Conclusion: VICR Has an Edge Over NVTS
Navitas Semiconductor and Vicor are both set to ride the long-term growth in AI and data center markets, but their current positions are very different. Currently, NVTS faces near-term risks from its decision to deprioritize its lower-margin mobile and consumer business, which could create revenue volatility in the upcoming quarters.
In contrast, Vicor continues to benefit from strong demand across its high-performance computing, industrial, and aerospace and defense businesses. Further, VICR’s reasonable valuation offers some downside protection as well, making the stock an attractive buy.
Currently, VICR carries a Zacks Rank #2 (Buy), giving a clear edge over NVTS, which 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).