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NVTS vs. LITE: Which Semiconductor Stock Has an Edge Right Now?
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Key Takeaways
NVTS is pivoting to high-power GaN and SiC for AI data centers but faces sharp revenue declines in 2025.
NVTS is exiting low-margin mobile business, weighing on near-term sales as it refocuses on AI power markets.
Lumentum posted record Q1 fiscal 2026 revenues as AI-driven optical demand boosts growth and margins.
Navitas Semiconductor (NVTS - Free Report) and Lumentum Holdings (LITE - Free Report) are two key players operating in the semiconductor industry. They benefit from the growing demand for data centers, artificial intelligence (AI) infrastructure, and energy-efficient technologies.
Navitas Semiconductor focuses on Gallium nitride (GaN) and Silicon carbide (SiC) chips used in next-generation AI data centers and energy systems. Its products are used in fast chargers, electric vehicles, and data centers. Lumentum designs and sells optical and photonic components, such as lasers and optical networking products, which help move data quickly through fiber-optic networks used by cloud and AI data centers.
Both NVTS and LITE 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 trying to reposition itself around high-power markets, and its inclusion in NVIDIA’s new 800-volt AI factory ecosystem is an important step. The new architecture shifts data center power distribution from traditional AC/DC stages to a high-voltage DC approach that requires faster, more efficient power electronics. This creates an opening for Navitas Semiconductor’s GaN and high-voltage SiC technologies, both of which are now part of the NVIDIA-led ecosystem.
In the third quarter of 2025, Navitas Semiconductor highlighted that it is one of the few companies offering both GaN and SiC solutions across the full power path, from the grid to the GPU. The company has begun sampling mid-voltage GaN devices at 100 volts, which target the last stage of power conversion inside AI servers. It is also sampling 2.3 kV and 3.3 kV SiC modules for grid and energy storage applications that support these new data center designs.
Moreover, the company is witnessing growing customer interest in its GaN and high-voltage SiC products, especially as hyperscalers and GPU vendors work on new power architectures for AI data centers. Navitas Semiconductor’s customers require faster development and deeper collaboration, where the company’s GaN and high-voltage SiC technologies will play a pivotal role to support these new-age AI architectures, driving the company to accelerate its shift to these fast-growing high-power markets.
However, the company’s decision to deprioritize its lower-margin China mobile business weighs on its near-term prospects. The company is walking away from low-margin mobile products to focus its resources on high-power business. In the third quarter of 2025, revenues were about $10.1 million, down more than 50% from last year due to weak demand and strong pricing pressure in the mobile business, especially in China.
Furthermore, for the fourth quarter of 2025, management projects revenues to be around $7 million, which means another sequential decline. The company is reducing exposure to low-margin mobile and consumer customers, cutting channel inventory, and consolidating distributors, all of which reduce near-term revenues.
The Zacks Consensus Estimate for Navitas Semiconductor’s full-year 2025 total revenues is pegged at $45.46 million, indicating a year-over-year decline of 45.4%. The consensus mark for 2026 indicates revenues to decline 15.6% year over year to $38.36 million.
Image Source: Zacks Investment Research
The Case for Lumentum Stock
Lumentum makes optical components that are used inside data centers and high-speed networks. These components help move data quickly between servers, racks, and data centers. Because AI workloads need much more data movement than normal computing, demand for these optical products has increased sharply.
Lumentum is growing fast because spending on AI and cloud data centers is increasing. In the first quarter of fiscal 2026, the company reported revenues of about $533.8 million, up more than 58% from last year. These were the highest quarterly revenues in the company’s history. Management said that more than 60% of total revenues now come from cloud and AI-related customers.
The main reason for this growth is the strong demand for optical components, especially laser chips. These laser chips are used in data centers to move data quickly between servers and networks. AI workloads need much more data movement than traditional computing. Right now, demand for these laser products is increasing more than what Lumentum can supply.
Lumentum is sold out in some laser categories, which is supporting both revenue growth and better pricing. Factories are running at higher capacity, and more sales are coming from high-margin laser chips. This helped gross margin and operating margin move higher in the quarter. During the first quarter, non-GAAP gross margin increased 660 basis points, year over year, while non-GAAP operating margin expanded by 1,570 basis points on a year-over-year basis.
The systems business, which includes optical transceivers, is also improving. In earlier periods, this business had uneven growth due to production issues. These problems are now easing. Management expects steadier growth as 800G products ramp and as the company prepares for future 1.6T products. Lumentum also sees future growth from optical circuit switches and co-packaged optics, with more impact expected from 2026.
The Zacks Consensus Estimate for Lumentum’s fiscal 2026 and 2027 total revenues indicates a year-over-year increase of 56% and 31.4%, respectively.
Image Source: Zacks Investment Research
NVTS vs. LITE: Earnings Estimate Trend
The earnings estimate revision trend for the two companies reflects that analysts are turning more bullish toward Lumentum.
NVTS Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
LITE Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
NVT vs. APH: Price Performance and Valuation
In the past six months, Lumentum shares have surged 264.4%, and shares of Navitas Semiconductor have risen 5.8%.
6-Month Price Return Performance
Image Source: Zacks Investment Research
Currently, Lumentum is trading at a forward sales multiple of 7.62X, lower than Navitas Semiconductor’s forward sales multiple of 46.72X. Navitas Semiconductor does seem pricey compared with Lumentum. In contrast, Lumentum’s reasonable valuation makes it more attractive for investors looking for value and stability.
NVTS vs. LITE: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: LITE Has an Edge Over NVTS
Navitas Semiconductor and Lumentum are both set to ride the long-term growth in AI and data center markets, but their current positions are very different. Currently, Navitas Semiconductor is facing risks of lower revenues and near-term uncertainty as it shifts away from the lower-margin mobile business.
In contrast, Lumentum is already seeing strong results from rising AI and cloud spending. Its revenues and margins are improving, demand for its products is strong, and earnings estimates are moving higher. The stock has also performed much better in recent months and trades at a more reasonable valuation given its growth.
Image: Bigstock
NVTS vs. LITE: Which Semiconductor Stock Has an Edge Right Now?
Key Takeaways
Navitas Semiconductor (NVTS - Free Report) and Lumentum Holdings (LITE - Free Report) are two key players operating in the semiconductor industry. They benefit from the growing demand for data centers, artificial intelligence (AI) infrastructure, and energy-efficient technologies.
Navitas Semiconductor focuses on Gallium nitride (GaN) and Silicon carbide (SiC) chips used in next-generation AI data centers and energy systems. Its products are used in fast chargers, electric vehicles, and data centers. Lumentum designs and sells optical and photonic components, such as lasers and optical networking products, which help move data quickly through fiber-optic networks used by cloud and AI data centers.
Both NVTS and LITE 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 trying to reposition itself around high-power markets, and its inclusion in NVIDIA’s new 800-volt AI factory ecosystem is an important step. The new architecture shifts data center power distribution from traditional AC/DC stages to a high-voltage DC approach that requires faster, more efficient power electronics. This creates an opening for Navitas Semiconductor’s GaN and high-voltage SiC technologies, both of which are now part of the NVIDIA-led ecosystem.
In the third quarter of 2025, Navitas Semiconductor highlighted that it is one of the few companies offering both GaN and SiC solutions across the full power path, from the grid to the GPU. The company has begun sampling mid-voltage GaN devices at 100 volts, which target the last stage of power conversion inside AI servers. It is also sampling 2.3 kV and 3.3 kV SiC modules for grid and energy storage applications that support these new data center designs.
Moreover, the company is witnessing growing customer interest in its GaN and high-voltage SiC products, especially as hyperscalers and GPU vendors work on new power architectures for AI data centers. Navitas Semiconductor’s customers require faster development and deeper collaboration, where the company’s GaN and high-voltage SiC technologies will play a pivotal role to support these new-age AI architectures, driving the company to accelerate its shift to these fast-growing high-power markets.
However, the company’s decision to deprioritize its lower-margin China mobile business weighs on its near-term prospects. The company is walking away from low-margin mobile products to focus its resources on high-power business. In the third quarter of 2025, revenues were about $10.1 million, down more than 50% from last year due to weak demand and strong pricing pressure in the mobile business, especially in China.
Furthermore, for the fourth quarter of 2025, management projects revenues to be around $7 million, which means another sequential decline. The company is reducing exposure to low-margin mobile and consumer customers, cutting channel inventory, and consolidating distributors, all of which reduce near-term revenues.
The Zacks Consensus Estimate for Navitas Semiconductor’s full-year 2025 total revenues is pegged at $45.46 million, indicating a year-over-year decline of 45.4%. The consensus mark for 2026 indicates revenues to decline 15.6% year over year to $38.36 million.
Image Source: Zacks Investment Research
The Case for Lumentum Stock
Lumentum makes optical components that are used inside data centers and high-speed networks. These components help move data quickly between servers, racks, and data centers. Because AI workloads need much more data movement than normal computing, demand for these optical products has increased sharply.
Lumentum is growing fast because spending on AI and cloud data centers is increasing. In the first quarter of fiscal 2026, the company reported revenues of about $533.8 million, up more than 58% from last year. These were the highest quarterly revenues in the company’s history. Management said that more than 60% of total revenues now come from cloud and AI-related customers.
The main reason for this growth is the strong demand for optical components, especially laser chips. These laser chips are used in data centers to move data quickly between servers and networks. AI workloads need much more data movement than traditional computing. Right now, demand for these laser products is increasing more than what Lumentum can supply.
Lumentum is sold out in some laser categories, which is supporting both revenue growth and better pricing. Factories are running at higher capacity, and more sales are coming from high-margin laser chips. This helped gross margin and operating margin move higher in the quarter. During the first quarter, non-GAAP gross margin increased 660 basis points, year over year, while non-GAAP operating margin expanded by 1,570 basis points on a year-over-year basis.
The systems business, which includes optical transceivers, is also improving. In earlier periods, this business had uneven growth due to production issues. These problems are now easing. Management expects steadier growth as 800G products ramp and as the company prepares for future 1.6T products. Lumentum also sees future growth from optical circuit switches and co-packaged optics, with more impact expected from 2026.
The Zacks Consensus Estimate for Lumentum’s fiscal 2026 and 2027 total revenues indicates a year-over-year increase of 56% and 31.4%, respectively.
Image Source: Zacks Investment Research
NVTS vs. LITE: Earnings Estimate Trend
The earnings estimate revision trend for the two companies reflects that analysts are turning more bullish toward Lumentum.
NVTS Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
LITE Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
NVT vs. APH: Price Performance and Valuation
In the past six months, Lumentum shares have surged 264.4%, and shares of Navitas Semiconductor have risen 5.8%.
6-Month Price Return Performance
Image Source: Zacks Investment Research
Currently, Lumentum is trading at a forward sales multiple of 7.62X, lower than Navitas Semiconductor’s forward sales multiple of 46.72X. Navitas Semiconductor does seem pricey compared with Lumentum. In contrast, Lumentum’s reasonable valuation makes it more attractive for investors looking for value and stability.
NVTS vs. LITE: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: LITE Has an Edge Over NVTS
Navitas Semiconductor and Lumentum are both set to ride the long-term growth in AI and data center markets, but their current positions are very different. Currently, Navitas Semiconductor is facing risks of lower revenues and near-term uncertainty as it shifts away from the lower-margin mobile business.
In contrast, Lumentum is already seeing strong results from rising AI and cloud spending. Its revenues and margins are improving, demand for its products is strong, and earnings estimates are moving higher. The stock has also performed much better in recent months and trades at a more reasonable valuation given its growth.
Currently, Lumentum sports a Zacks Rank #1 (Strong Buy), giving a clear edge over Navitas Semiconductor, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.