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Why Navitas Sees GaN Playing a Bigger Role Inside Future AI Racks
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Key Takeaways
NVTS will show 800V-to-6V and 800V-to-50V platforms for high-density AI racks at PCIM 2026.
NVTS sees multi-megawatt AI racks driving 800V power, with SiC used in front-end AC/DC up to 25-30kW PSUs.
Navitas says in-rack DC-DC will need GaN for speed and density.
Navitas Semiconductor (NVTS - Free Report) plans to exhibit new gallium nitride (GaN) and silicon carbide (SiC)-based solutions aimed at 800V AI power systems at the upcoming PCIM 2026. These include ultra-high-efficiency 800V-to-6V and 800V-to-50V platforms designed for future high-density server racks.
While the products themselves are important, the bigger takeaway may be what they reveal about Navitas’ long-term thesis for AI infrastructure. Management increasingly believes that as hyperscalers push toward higher-density and multi-megawatt AI racks, GaN could become increasingly important for in-rack power conversion because of its switching-speed and power-density advantages.
AI Infrastructure Driving a Shift Toward 800V Systems
AI server racks are becoming more power-intensive. Navitas expects future racks to move toward multi-megawatt-scale systems as AI model complexity and GPU density continue rising. That is pushing data center operators to rethink traditional power architectures. Higher-voltage 800V systems are increasingly viewed as a way to improve efficiency, reduce conversion losses, and support higher rack densities.
On the company’s latest earnings call, CEO Chris Allexandre noted that the first phase of this transition mainly involves higher-power AC/DC conversion systems, where SiC plays a major role. Power supply units are evolving from roughly 5-10kW today toward 18.5kW systems and potentially even 25-30kW designs for some hyperscalers.
Navitas’ latest PCIM preview included fifth-generation 1200V GeneSiC MOSFETs targeted at AI data center applications.
Why NVTS Believes GaN Could Become Essential
The bigger long-term opportunity, however, may come from what happens deeper inside the rack. The next stage of AI infrastructure evolution will involve moving DC-DC conversion directly inside the server rack itself. Navitas believes that the shift is increasingly favoring GaN because of its switching speed and power-density advantages.
“When you do that, you have no choice than to use GaN,” Allexandre said while discussing future in-rack DC-DC conversion architectures. He added that silicon carbide may struggle to support the switching frequency requirements needed for these high-density systems.
That explains why Navitas is aggressively expanding its GaN platform portfolio, including its latest 800V-to-6V and 800V-to-50V reference designs to be showcased at PCIM.
Why Having Both GaN and SiC Could Matter
While GaN may become increasingly important inside future AI racks, Navitas believes having both GaN and SiC technologies gives it a competitive advantage. There aren’t many semiconductor suppliers offering advanced platforms across both technologies.
That could matter as hyperscalers pursue different paths toward higher-density AI infrastructure. SiC is expected to remain critical for higher-power front-end conversion and grid infrastructure, while GaN could play a larger role in future in-rack power delivery systems. For Navitas, the combination may allow the company to participate across multiple stages of the AI power chain rather than relying on a single technology transition alone.
Peer Check: ON & IFNNY Expanding Across GaN and SiC
onsemi’s (ON - Free Report) portfolio now spans silicon, SiC, and GaN technologies, and they're moving aggressively. Late last year, onsemi partnered with GlobalFoundries to expand into high-performance 650V lateral GaN solutions targeting AI data centers, among other markets. Importantly, onsemi also introduced vertical GaN (vGaN) semiconductors built on GaN-on-GaN technology, enabling higher operating voltages and faster switching frequencies for AI data center applications.
InfineonTechnologies (IFNNY - Free Report) also pursues a dual GaN and SiC strategy in AI power. It positions silicon carbide and gallium nitride as the two materials essential for AI data centers, electric vehicles, and renewable energy. Infineon became the first company worldwide to announce 300-millimeter in-house manufacturing of GaN-based semiconductors. Infineon is simultaneously shifting SiC manufacturing to 200-millimeter wafers, thereby driving economies of scale across both technologies.
NVTS' Price Performance, Valuation & Estimates
Shares of Navitas have surged more than 300% year to date compared with the industry’s growth of 45%.
Image Source: Zacks Investment Research
From a valuation standpoint, Navitas trades at a forward price-to-sales ratio of 124.38X, significantly higher than the industry’s average of 9.57X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Navitas’ 2026 and 2027 bottom line is pegged at a loss of 17 cents per share and 15 cents per share, respectively. See how the loss estimates have been revised over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Why Navitas Sees GaN Playing a Bigger Role Inside Future AI Racks
Key Takeaways
Navitas Semiconductor (NVTS - Free Report) plans to exhibit new gallium nitride (GaN) and silicon carbide (SiC)-based solutions aimed at 800V AI power systems at the upcoming PCIM 2026. These include ultra-high-efficiency 800V-to-6V and 800V-to-50V platforms designed for future high-density server racks.
While the products themselves are important, the bigger takeaway may be what they reveal about Navitas’ long-term thesis for AI infrastructure. Management increasingly believes that as hyperscalers push toward higher-density and multi-megawatt AI racks, GaN could become increasingly important for in-rack power conversion because of its switching-speed and power-density advantages.
AI Infrastructure Driving a Shift Toward 800V Systems
AI server racks are becoming more power-intensive. Navitas expects future racks to move toward multi-megawatt-scale systems as AI model complexity and GPU density continue rising. That is pushing data center operators to rethink traditional power architectures. Higher-voltage 800V systems are increasingly viewed as a way to improve efficiency, reduce conversion losses, and support higher rack densities.
On the company’s latest earnings call, CEO Chris Allexandre noted that the first phase of this transition mainly involves higher-power AC/DC conversion systems, where SiC plays a major role. Power supply units are evolving from roughly 5-10kW today toward 18.5kW systems and potentially even 25-30kW designs for some hyperscalers.
Navitas’ latest PCIM preview included fifth-generation 1200V GeneSiC MOSFETs targeted at AI data center applications.
Why NVTS Believes GaN Could Become Essential
The bigger long-term opportunity, however, may come from what happens deeper inside the rack. The next stage of AI infrastructure evolution will involve moving DC-DC conversion directly inside the server rack itself. Navitas believes that the shift is increasingly favoring GaN because of its switching speed and power-density advantages.
“When you do that, you have no choice than to use GaN,” Allexandre said while discussing future in-rack DC-DC conversion architectures. He added that silicon carbide may struggle to support the switching frequency requirements needed for these high-density systems.
That explains why Navitas is aggressively expanding its GaN platform portfolio, including its latest 800V-to-6V and 800V-to-50V reference designs to be showcased at PCIM.
Why Having Both GaN and SiC Could Matter
While GaN may become increasingly important inside future AI racks, Navitas believes having both GaN and SiC technologies gives it a competitive advantage. There aren’t many semiconductor suppliers offering advanced platforms across both technologies.
That could matter as hyperscalers pursue different paths toward higher-density AI infrastructure. SiC is expected to remain critical for higher-power front-end conversion and grid infrastructure, while GaN could play a larger role in future in-rack power delivery systems. For Navitas, the combination may allow the company to participate across multiple stages of the AI power chain rather than relying on a single technology transition alone.
Peer Check: ON & IFNNY Expanding Across GaN and SiC
onsemi’s (ON - Free Report) portfolio now spans silicon, SiC, and GaN technologies, and they're moving aggressively. Late last year, onsemi partnered with GlobalFoundries to expand into high-performance 650V lateral GaN solutions targeting AI data centers, among other markets. Importantly, onsemi also introduced vertical GaN (vGaN) semiconductors built on GaN-on-GaN technology, enabling higher operating voltages and faster switching frequencies for AI data center applications.
Infineon Technologies (IFNNY - Free Report) also pursues a dual GaN and SiC strategy in AI power. It positions silicon carbide and gallium nitride as the two materials essential for AI data centers, electric vehicles, and renewable energy. Infineon became the first company worldwide to announce 300-millimeter in-house manufacturing of GaN-based semiconductors. Infineon is simultaneously shifting SiC manufacturing to 200-millimeter wafers, thereby driving economies of scale across both technologies.
NVTS' Price Performance, Valuation & Estimates
Shares of Navitas have surged more than 300% year to date compared with the industry’s growth of 45%.
From a valuation standpoint, Navitas trades at a forward price-to-sales ratio of 124.38X, significantly higher than the industry’s average of 9.57X.
The Zacks Consensus Estimate for Navitas’ 2026 and 2027 bottom line is pegged at a loss of 17 cents per share and 15 cents per share, respectively. See how the loss estimates have been revised over the past 60 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.