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LITE vs. NVTS: Which AI Data Center Stock Is the Better Buy?
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Key Takeaways
Lumentum is seeing surging demand for optical components as AI workloads boost data center connectivity.
LITE's 800G shipments, 1.6T modules and laser demand are driving growth and capacity expansion.
Navitas is ramping AI power programs, but losses, rising spending and execution risks remain key challenges.
Lumentum Holdings (LITE - Free Report) and Navitas Semiconductor (NVTS - Free Report) are two key players in the AI data center market. They benefit from the growing demand for data centers, artificial intelligence (AI) infrastructure, and energy-efficient technologies.
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. 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.
LITE or NVTS — Which of these AI Data Center stocks has the greater upside potential? Let’s find out.
The Case for LITE Stock
Lumentum is benefiting from strong demand for its optical components and systems, driven by the industry shift to AI workloads and increased data center connectivity. In the fourth quarter of fiscal 2026, the company reported a 109% year-over-year revenue surge to $1.01 billion, marking its eighth consecutive quarter of top-line growth. Accelerating adoption of optical links in data centers, driven by AI workloads that demand higher speed and bandwidth, is fueling this momentum.
Key growth drivers include record shipments of 800G cloud transceivers, the launch of next-generation 1.6T modules and strong demand for both EML and CW laser chips. LITE’s pump laser shipments surged more than 80% year over year in the fourth quarter of fiscal 2026, and the company remains effectively sold out despite rapid capacity expansion. Strategic long-term agreements with major customers further secure future demand and support ongoing capital investments.
The market’s shift toward near-packaged optics (NPO) and co-packaged optics (CPO) is also playing directly to LITE’s strengths. Customers are increasingly adopting these architectures as intermediate steps to full CPO deployment, significantly expanding the total addressable market for optical solutions.
The company is already seeing strong NPO momentum across multiple high-velocity engagements, leveraging its industry-leading laser chip technology. Lumentum expects a fourfold increase in pump laser shipments over the next several quarters and is expanding capacity at its wafer fabs to capture the coming 200-gig and 300-gig lane speed opportunities.
The Case for NVTS Stock
Navitas Semiconductor is becoming a focused high-power semiconductor supplier for AI data centers, grid infrastructure, performance computing and industrial electrification. Its combined GaN and high-voltage SiC portfolio broadens content opportunities across evolving power architectures, while record book-to-bill, multiple customer programs and a richer product mix support growth and margin expansion.
Management highlighted a sequential revenue increase of 22% in the second quarter of 2026, with high-power markets growing more than 50% year over year. Navitas Semiconductor’s AI-focused product offerings have established it as a differentiated provider for hyperscalers and telecenter OEMs, with multiple major design wins and ramping programs that will accelerate growth through 2027 and beyond.
The company is securing opportunities across AC-DC power supplies, DC-DC power supplies, battery backup units and compute trays. Several programs are expected to ramp up during the second half of 2026 and continue through 2027. Management said that the initial SiC adoption cycle is already occurring independently of native 800V deployment because higher rack power requires greater efficiency and density.
Sidecar-related programs are expected to begin ramping up in the first half of 2027 and accelerate around midyear. Native 800V systems should create another GaN content increase from mid-to-late 2027 into 2028. Record book-to-bill and backlog extending beyond 2026 support management’s expectation for double-digit sequential growth through the second half of 2026.
Price Performance and Valuation of LITE and NVTS
In the year-to-date period, LITE shares have skyrocketed 150%, outperforming Navitas Semiconductor shares, which have risen 64.3%. Lumentum is benefiting from the rapid expansion of AI and cloud infrastructure, which is increasing bandwidth requirements within data centers and accelerating the shift from electrical to optical connectivity.
Despite Navitas Semiconductor expanding its portfolio, revenues remain small relative to operating costs, profitability is still distant and planned spending is rising. Future growth depends on customers completing lengthy qualifications and scaling new AI programs. Competition, foundry dependence and pending litigation add execution risk.
LITE and NVTS Stock Performance
Image Source: Zacks Investment Research
Both LITE and NVTS shares are currently overvalued, as suggested by a Value Score of F.
In terms of forward 12-month Price/Sales, LITE shares are trading at 11.66X, lower than NVTS’s 48.08X.
LITE and NVTS Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for LITE & NVTS?
The Zacks Consensus Estimate for LITE’s fiscal 2027 earnings is pegged at $21.30 per share, which has increased 0.14% over the past 30 days. This indicates a 145.67% increase year over year.
The Zacks Consensus Estimate for NVTS’s 2026 earnings is pegged at a loss of 14 cents per share, which has been unchanged over the past 30 days. This indicates a 30% increase year over year.
Navitas Semiconductor Corporation Price and Consensus
Lumentum’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 9.77%. Navitas Semiconductor earnings beat the consensus mark in one of the trailing four quarters while came in line in the other three occasions, delivering an average surprise of 5%. The average surprise of Lumentum is higher than that of Navitas Semiconductor.
Conclusion
While both LITE and NVTS stand to benefit from robust AI data-center demand, Lumentum appears better positioned, backed by stronger earnings growth, rising estimates and accelerating demand for next-generation optical solutions.
NVTS, meanwhile, faces ongoing losses and execution risks as it works to scale its AI-focused power semiconductor programs.
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LITE vs. NVTS: Which AI Data Center Stock Is the Better Buy?
Key Takeaways
Lumentum Holdings (LITE - Free Report) and Navitas Semiconductor (NVTS - Free Report) are two key players in the AI data center market. They benefit from the growing demand for data centers, artificial intelligence (AI) infrastructure, and energy-efficient technologies.
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. 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.
LITE or NVTS — Which of these AI Data Center stocks has the greater upside potential? Let’s find out.
The Case for LITE Stock
Lumentum is benefiting from strong demand for its optical components and systems, driven by the industry shift to AI workloads and increased data center connectivity. In the fourth quarter of fiscal 2026, the company reported a 109% year-over-year revenue surge to $1.01 billion, marking its eighth consecutive quarter of top-line growth. Accelerating adoption of optical links in data centers, driven by AI workloads that demand higher speed and bandwidth, is fueling this momentum.
Key growth drivers include record shipments of 800G cloud transceivers, the launch of next-generation 1.6T modules and strong demand for both EML and CW laser chips. LITE’s pump laser shipments surged more than 80% year over year in the fourth quarter of fiscal 2026, and the company remains effectively sold out despite rapid capacity expansion. Strategic long-term agreements with major customers further secure future demand and support ongoing capital investments.
The market’s shift toward near-packaged optics (NPO) and co-packaged optics (CPO) is also playing directly to LITE’s strengths. Customers are increasingly adopting these architectures as intermediate steps to full CPO deployment, significantly expanding the total addressable market for optical solutions.
The company is already seeing strong NPO momentum across multiple high-velocity engagements, leveraging its industry-leading laser chip technology. Lumentum expects a fourfold increase in pump laser shipments over the next several quarters and is expanding capacity at its wafer fabs to capture the coming 200-gig and 300-gig lane speed opportunities.
The Case for NVTS Stock
Navitas Semiconductor is becoming a focused high-power semiconductor supplier for AI data centers, grid infrastructure, performance computing and industrial electrification. Its combined GaN and high-voltage SiC portfolio broadens content opportunities across evolving power architectures, while record book-to-bill, multiple customer programs and a richer product mix support growth and margin expansion.
Management highlighted a sequential revenue increase of 22% in the second quarter of 2026, with high-power markets growing more than 50% year over year. Navitas Semiconductor’s AI-focused product offerings have established it as a differentiated provider for hyperscalers and telecenter OEMs, with multiple major design wins and ramping programs that will accelerate growth through 2027 and beyond.
The company is securing opportunities across AC-DC power supplies, DC-DC power supplies, battery backup units and compute trays. Several programs are expected to ramp up during the second half of 2026 and continue through 2027. Management said that the initial SiC adoption cycle is already occurring independently of native 800V deployment because higher rack power requires greater efficiency and density.
Sidecar-related programs are expected to begin ramping up in the first half of 2027 and accelerate around midyear. Native 800V systems should create another GaN content increase from mid-to-late 2027 into 2028. Record book-to-bill and backlog extending beyond 2026 support management’s expectation for double-digit sequential growth through the second half of 2026.
Price Performance and Valuation of LITE and NVTS
In the year-to-date period, LITE shares have skyrocketed 150%, outperforming Navitas Semiconductor shares, which have risen 64.3%. Lumentum is benefiting from the rapid expansion of AI and cloud infrastructure, which is increasing bandwidth requirements within data centers and accelerating the shift from electrical to optical connectivity.
Despite Navitas Semiconductor expanding its portfolio, revenues remain small relative to operating costs, profitability is still distant and planned spending is rising. Future growth depends on customers completing lengthy qualifications and scaling new AI programs. Competition, foundry dependence and pending litigation add execution risk.
LITE and NVTS Stock Performance
Image Source: Zacks Investment Research
Both LITE and NVTS shares are currently overvalued, as suggested by a Value Score of F.
In terms of forward 12-month Price/Sales, LITE shares are trading at 11.66X, lower than NVTS’s 48.08X.
LITE and NVTS Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for LITE & NVTS?
The Zacks Consensus Estimate for LITE’s fiscal 2027 earnings is pegged at $21.30 per share, which has increased 0.14% over the past 30 days. This indicates a 145.67% increase year over year.
Lumentum Holdings Inc. Price and Consensus
Lumentum Holdings Inc. price-consensus-chart | Lumentum Holdings Inc. Quote
The Zacks Consensus Estimate for NVTS’s 2026 earnings is pegged at a loss of 14 cents per share, which has been unchanged over the past 30 days. This indicates a 30% increase year over year.
Navitas Semiconductor Corporation Price and Consensus
Navitas Semiconductor Corporation price-consensus-chart | Navitas Semiconductor Corporation Quote
Lumentum’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 9.77%. Navitas Semiconductor earnings beat the consensus mark in one of the trailing four quarters while came in line in the other three occasions, delivering an average surprise of 5%. The average surprise of Lumentum is higher than that of Navitas Semiconductor.
Conclusion
While both LITE and NVTS stand to benefit from robust AI data-center demand, Lumentum appears better positioned, backed by stronger earnings growth, rising estimates and accelerating demand for next-generation optical solutions.
NVTS, meanwhile, faces ongoing losses and execution risks as it works to scale its AI-focused power semiconductor programs.
Currently, Lumentum has a Zacks Rank #2 (Buy), making the stock a stronger pick than Navitas Semiconductor, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.