We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Navitas Skyrockets 778% in a Year: Is the Stock a Buy Post Q1 Results?
Read MoreHide Full Article
Key Takeaways
NVTS stock has surged 778% in a year as investors bet on AI data center and grid demand.
Navitas expects Q2 revenues of about $10M, implying roughly 16% sequential growth.
NVTS trades at a steep premium despite losses and a small revenue scale, raising execution risks.
Navitas Semiconductor (NVTS - Free Report) stock has jumped a whopping 778% over the past year, handily outperforming close peers like On Semiconductor (ON - Free Report) and STMicroelectronics (STM - Free Report) . The rally has been driven by growing investor optimism around AI infrastructure spending, particularly in data centers and power-grid upgrades, where Navitas is emerging as a key player.
The company is undergoing a major strategic shift under its “Navitas 2.0” plan. It is moving away from slower-growth mobile and consumer markets and focusing on higher-growth areas such as AI data centers, energy and grid infrastructure, industrial electrification and performance computing. Management estimates these markets could represent a $3.5 billion serviceable available market by 2030, witnessing more than 60% CAGR.
Navitas’ position is strengthened by its portfolio of both gallium nitride (GaN) and high-voltage silicon carbide (SiC) technologies, giving it exposure across multiple parts of the AI power ecosystem.
Still, after such an explosive stock rally, investors are left wondering whether the shares can continue climbing from current levels. Or should they wait for a better entry point?
One-Year Price Performance Comparison
Image Source: Zacks Investment Research
First, let’s take a look at the company’s latest quarterly results.
NVTS’ Q1 Highlights & Q2 View
NVTS reported first-quarter 2026 revenues of $8.6 million, down from $14 million a year ago. However, sales improved 18% sequentially as demand from higher-power markets continued to rise. The company’s shift toward AI infrastructure and industrial applications also helped margins improve. Adjusted gross margin expanded to 39%, up from 38.7% in the previous quarter and 38.1% a year earlier. Navitas posted an adjusted loss of 4 cents per share, narrower than the consensus mark of 5 cents and the year-ago loss of 6 cents per share.
Management expects second-quarter revenues of about $10 million, implying roughly 16% sequential growth, while adjusted gross margin is projected at around 39.25%.
Navitas Semiconductor Corporation Price, Consensus and EPS Surprise
NVTS is benefiting from the rapid expansion of AI infrastructure, especially in data centers and power-grid upgrades. Navitas’ combined AI infrastructure business, which includes data center and grid applications, grew 50% sequentially in the first quarter of 2026, exceeding expectations. The company believes this opportunity is still in its early stages as current growth is largely tied to rising AI deployments. Over time, growth could accelerate further as future AI racks require far greater semiconductor content and more advanced power architectures.
Navitas is also strengthening its position through new AI-focused products, including a 20 kW 800V-to-6V GaNFast power delivery board for AI data centers and a 250 kW solid-state transformer solution aimed at next-generation grid infrastructure. Navitas also expanded its fifth-generation 1200V SiC MOSFET lineup with compact packages designed for higher-density AI power systems.
One major advantage for Navitas is its ability to offer both GaN and SiC technologies. Many rivals focus on only one technology, but hyperscalers increasingly want suppliers that can support the full AI power roadmap. SiC chips are currently important for high-power AC/DC conversion, while GaN is expected to play a larger role in next-generation in-rack power systems because of its higher efficiency and faster switching capabilities. This dual-technology portfolio positions Navitas well as AI data centers shift toward higher-power 800V HVDC architectures.
The company is also improving the quality of its business by moving away from lower-margin mobile and consumer markets and focusing on industrial and AI-driven applications. High-power markets now contribute most of the company’s revenue and grew 35% year over year in the last reported quarter, while mobile exposure is expected to become minimal by the end of the year. This transition is helping margins improve and could support more stable long-term growth due to longer product cycles and stronger customer visibility.
The Zacks Consensus Estimate for NVTS’ 2026 and 2027 bottom line implies a year-over-year improvement of 5% and 21%, respectively.
Navitas also remains financially solid despite ongoing losses. The company ended first-quarter 2026 with around $221 million in cash and no debt, giving it enough flexibility to continue investing in R&D and customer programs.
Valuation Check: NVTS vs. ON & STM
Navitas stock trades at a much higher P/S of 82.91X compared with On Semiconductor and STMicroelectronics. Meanwhile, ON and STM’s forward sales sit at 6.39X and 3.51X. Navitas has a Value Score of F.
NVTS Appears Overvalued
Image Source: Zacks Investment Research
How to Play the Stock Now
NVTS has strong exposure to fast-growing AI data center and power infrastructure markets, and its dual GaN and SiC portfolio gives it an advantage as AI power architectures evolve. However, the stock’s massive rally already appears to price in much of this optimism.
Despite improving momentum, Navitas is still operating at a very small scale. First-quarter revenues were only $8.6 million, while second-quarter guidance implies roughly $10 million in sales. The company also remains loss-making, and management indicated profitability may require quarterly revenues to reach the high-$30 million range. That leaves significant execution risk, especially if AI spending slows or customer ramps take longer than expected.
Navitas’ transition from a consumer-focused chipmaker to a high-power AI infrastructure supplier is operationally challenging, especially as it scales manufacturing, prepares for 8-inch GaN production with GlobalFoundries, and works to control costs despite its small scale.
With NVTS trading at a steep premium, the risk-reward balance does not look favorable at current levels. While the long-term story remains promising, the current risk-reward setup does not look attractive after the massive rally. Investors may be better off waiting for either stronger financial execution or a more reasonable entry point before considering the stock.
View the Zacks #1 Rank List
Image: Bigstock
Navitas Skyrockets 778% in a Year: Is the Stock a Buy Post Q1 Results?
Key Takeaways
Navitas Semiconductor (NVTS - Free Report) stock has jumped a whopping 778% over the past year, handily outperforming close peers like On Semiconductor (ON - Free Report) and STMicroelectronics (STM - Free Report) . The rally has been driven by growing investor optimism around AI infrastructure spending, particularly in data centers and power-grid upgrades, where Navitas is emerging as a key player.
The company is undergoing a major strategic shift under its “Navitas 2.0” plan. It is moving away from slower-growth mobile and consumer markets and focusing on higher-growth areas such as AI data centers, energy and grid infrastructure, industrial electrification and performance computing. Management estimates these markets could represent a $3.5 billion serviceable available market by 2030, witnessing more than 60% CAGR.
Navitas’ position is strengthened by its portfolio of both gallium nitride (GaN) and high-voltage silicon carbide (SiC) technologies, giving it exposure across multiple parts of the AI power ecosystem.
Still, after such an explosive stock rally, investors are left wondering whether the shares can continue climbing from current levels. Or should they wait for a better entry point?
One-Year Price Performance Comparison
First, let’s take a look at the company’s latest quarterly results.
NVTS’ Q1 Highlights & Q2 View
NVTS reported first-quarter 2026 revenues of $8.6 million, down from $14 million a year ago. However, sales improved 18% sequentially as demand from higher-power markets continued to rise. The company’s shift toward AI infrastructure and industrial applications also helped margins improve. Adjusted gross margin expanded to 39%, up from 38.7% in the previous quarter and 38.1% a year earlier. Navitas posted an adjusted loss of 4 cents per share, narrower than the consensus mark of 5 cents and the year-ago loss of 6 cents per share.
Management expects second-quarter revenues of about $10 million, implying roughly 16% sequential growth, while adjusted gross margin is projected at around 39.25%.
Navitas Semiconductor Corporation Price, Consensus and EPS Surprise
Navitas Semiconductor Corporation price-consensus-eps-surprise-chart | Navitas Semiconductor Corporation Quote
Key Growth Drivers for Navitas
NVTS is benefiting from the rapid expansion of AI infrastructure, especially in data centers and power-grid upgrades. Navitas’ combined AI infrastructure business, which includes data center and grid applications, grew 50% sequentially in the first quarter of 2026, exceeding expectations. The company believes this opportunity is still in its early stages as current growth is largely tied to rising AI deployments. Over time, growth could accelerate further as future AI racks require far greater semiconductor content and more advanced power architectures.
Navitas is also strengthening its position through new AI-focused products, including a 20 kW 800V-to-6V GaNFast power delivery board for AI data centers and a 250 kW solid-state transformer solution aimed at next-generation grid infrastructure. Navitas also expanded its fifth-generation 1200V SiC MOSFET lineup with compact packages designed for higher-density AI power systems.
One major advantage for Navitas is its ability to offer both GaN and SiC technologies. Many rivals focus on only one technology, but hyperscalers increasingly want suppliers that can support the full AI power roadmap. SiC chips are currently important for high-power AC/DC conversion, while GaN is expected to play a larger role in next-generation in-rack power systems because of its higher efficiency and faster switching capabilities. This dual-technology portfolio positions Navitas well as AI data centers shift toward higher-power 800V HVDC architectures.
The company is also improving the quality of its business by moving away from lower-margin mobile and consumer markets and focusing on industrial and AI-driven applications. High-power markets now contribute most of the company’s revenue and grew 35% year over year in the last reported quarter, while mobile exposure is expected to become minimal by the end of the year. This transition is helping margins improve and could support more stable long-term growth due to longer product cycles and stronger customer visibility.
The Zacks Consensus Estimate for NVTS’ 2026 and 2027 bottom line implies a year-over-year improvement of 5% and 21%, respectively.
Navitas also remains financially solid despite ongoing losses. The company ended first-quarter 2026 with around $221 million in cash and no debt, giving it enough flexibility to continue investing in R&D and customer programs.
Valuation Check: NVTS vs. ON & STM
Navitas stock trades at a much higher P/S of 82.91X compared with On Semiconductor and STMicroelectronics. Meanwhile, ON and STM’s forward sales sit at 6.39X and 3.51X. Navitas has a Value Score of F.
NVTS Appears Overvalued
How to Play the Stock Now
NVTS has strong exposure to fast-growing AI data center and power infrastructure markets, and its dual GaN and SiC portfolio gives it an advantage as AI power architectures evolve. However, the stock’s massive rally already appears to price in much of this optimism.
Despite improving momentum, Navitas is still operating at a very small scale. First-quarter revenues were only $8.6 million, while second-quarter guidance implies roughly $10 million in sales. The company also remains loss-making, and management indicated profitability may require quarterly revenues to reach the high-$30 million range. That leaves significant execution risk, especially if AI spending slows or customer ramps take longer than expected.
Navitas’ transition from a consumer-focused chipmaker to a high-power AI infrastructure supplier is operationally challenging, especially as it scales manufacturing, prepares for 8-inch GaN production with GlobalFoundries, and works to control costs despite its small scale.
With NVTS trading at a steep premium, the risk-reward balance does not look favorable at current levels. While the long-term story remains promising, the current risk-reward setup does not look attractive after the massive rally. Investors may be better off waiting for either stronger financial execution or a more reasonable entry point before considering the stock.
NVTS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.