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NVTS Stock Surges 72% YTD: Should You Hold or Book Profits?
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Key Takeaways
NVTS is benefiting from strong high-power growth as AI data centers demand efficient power solutions.
800V adoption and GaN and SiC products could support growth as customer programs move toward production.
Mobile revenues are declining faster than planned, while NVTS' premium valuation warrants caution.
Navitas Semiconductor (NVTS - Free Report) shares have rallied 72.2% year to date (YTD), outperforming the Zacks Electronics - Semiconductors industry’s growth of 39%. The stock also outperformed its industry peers, including Synaptics (SYNA - Free Report) , Amkor Technology (AMKR - Free Report) and Ambarella (AMBA - Free Report) . YTD, shares of Synaptics and Amkor Technology have risen 61.8% and 39.1%, respectively, while Ambarella shares have lost 4.1%.
The outperformance of NVTS shares raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
YTD Price Return Performance
Image Source: Zacks Investment Research
800V Opportunity to Boost NVTS’ AI Data Center Growth
Navitas Semiconductor is positioning itself to benefit from the growing power needs of AI data centers. The company is focusing on high-power applications using its gallium nitride (GaN) and silicon carbide (SiC) technologies. In the second quarter of 2026, total revenues increased 22% sequentially, while high-power markets grew more than 50% year over year. NVTS expects AI infrastructure to account for more than one-third of its total sales by the end of 2026.
The transition to 800V is expected to create several growth opportunities for NVTS. The company sees the first stage already taking place, with higher-power AC/DC power supplies increasingly using SiC as data center racks demand greater power and density. The next stage is the adoption of 800V through power sidecar racks, which is expected to ramp in 2027. Later stages could bring 800V directly to GPU and XPU trays, increasing the use of GaN for high-frequency DC/DC conversion. NVTS expects these developments to happen in steps across multiple platforms and customers rather than through a single rollout.
NVTS is already working with hyperscalers, data centers, OEMs and ODMs on programs that are expected to ramp in the second half of 2026 and accelerate in 2027. The company is also seeing traction in DC/DC power supplies and battery backup units, where both GaN and SiC are being designed in. This is supporting strong growth in NVTS’ AI infrastructure revenues, which have increased more than 50% sequentially in both the first and second quarters of 2026, with growth expected to accelerate as more programs move toward production.
The company expects continued double-digit quarterly revenue growth in the second half of 2026, with third-quarter revenues guided to $13.5 million at the midpoint, indicating a 28% sequential growth supported by the move toward high-power products. With 800V adoption expected to expand across multiple stages, NVTS appears well-positioned to benefit from rising power requirements in AI infrastructure over the coming years. The Zacks Consensus Estimate for 2026 and 2027 indicates revenue growth of around 4.1% and 44.6%, respectively.
Image Source: Zacks Investment Research
Declining Mobile Revenues Creates Near-Term Headwind for NVTS
NVTS is deliberately reducing its exposure to mobile and low-end consumer applications as part of its “Navitas 2.0” transformation. In the second quarter of 2026, mobile revenues declined both sequentially and year over year, and management said the company expects its mobile and low-end consumer business to become insignificant by the end of 2026. Management also noted that the reduction in mobile revenues is happening faster than previously expected, with the transition now about one quarter ahead of plan.
This creates a near-term revenue headwind because NVTS is reducing an existing source of sales before its newer high-power markets are fully scaled. The company expects this gap to be filled by AI infrastructure, grid and energy infrastructure, performance computing and other high-power applications. While the shift might improve the company’s revenue mix over time, the decline creates a near-term headwind that must be offset by faster growth in AI infrastructure and other high-power markets.
NVTS' Premium Valuation Warrants a Cautious Approach
Navitas Semiconductor is currently trading at a high price-to-sales (P/S) multiple compared with the Zacks Electronics - Semiconductors industry. Navitas Semiconductor’s forward 12-month P/S ratio sits at 50.55X, significantly higher than the industry’s forward 12-month P/S ratio of 5.25X. The Zacks Value Score of F also suggests that NVTS stock is overvalued.
NVTS’ Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Navitas Semiconductor stock trades at a higher P/S multiple compared with other industry peers, including Synaptics, Amkor Technology and Ambarella. At present, Synaptics, Amkor Technology and Ambarella have P/S multiples of 3.51X, 1.67X and 6.36X, respectively.
Conclusion: Hold NVTS Stock Right Now
Navitas Semiconductor is seeing strong growth in its high-power business as AI data centers require more efficient power solutions. Management expects AI infrastructure to account for more than one-third of total sales by the end of 2026, while the shift toward 800V power architecture and new GaN and SiC products could support further growth as more customer programs move toward production.
However, NVTS faces near-term pressure from the decline in mobile and low-end consumer revenues, which management expects to become insignificant by the end of 2026. Further, Navitas Semiconductor’s premium valuation warrants a cautious approach to the stock.
View the Zacks #1 Rank List
Image: Bigstock
NVTS Stock Surges 72% YTD: Should You Hold or Book Profits?
Key Takeaways
Navitas Semiconductor (NVTS - Free Report) shares have rallied 72.2% year to date (YTD), outperforming the Zacks Electronics - Semiconductors industry’s growth of 39%. The stock also outperformed its industry peers, including Synaptics (SYNA - Free Report) , Amkor Technology (AMKR - Free Report) and Ambarella (AMBA - Free Report) . YTD, shares of Synaptics and Amkor Technology have risen 61.8% and 39.1%, respectively, while Ambarella shares have lost 4.1%.
The outperformance of NVTS shares raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
YTD Price Return Performance
Image Source: Zacks Investment Research
800V Opportunity to Boost NVTS’ AI Data Center Growth
Navitas Semiconductor is positioning itself to benefit from the growing power needs of AI data centers. The company is focusing on high-power applications using its gallium nitride (GaN) and silicon carbide (SiC) technologies. In the second quarter of 2026, total revenues increased 22% sequentially, while high-power markets grew more than 50% year over year. NVTS expects AI infrastructure to account for more than one-third of its total sales by the end of 2026.
The transition to 800V is expected to create several growth opportunities for NVTS. The company sees the first stage already taking place, with higher-power AC/DC power supplies increasingly using SiC as data center racks demand greater power and density. The next stage is the adoption of 800V through power sidecar racks, which is expected to ramp in 2027. Later stages could bring 800V directly to GPU and XPU trays, increasing the use of GaN for high-frequency DC/DC conversion. NVTS expects these developments to happen in steps across multiple platforms and customers rather than through a single rollout.
NVTS is already working with hyperscalers, data centers, OEMs and ODMs on programs that are expected to ramp in the second half of 2026 and accelerate in 2027. The company is also seeing traction in DC/DC power supplies and battery backup units, where both GaN and SiC are being designed in. This is supporting strong growth in NVTS’ AI infrastructure revenues, which have increased more than 50% sequentially in both the first and second quarters of 2026, with growth expected to accelerate as more programs move toward production.
The company expects continued double-digit quarterly revenue growth in the second half of 2026, with third-quarter revenues guided to $13.5 million at the midpoint, indicating a 28% sequential growth supported by the move toward high-power products. With 800V adoption expected to expand across multiple stages, NVTS appears well-positioned to benefit from rising power requirements in AI infrastructure over the coming years. The Zacks Consensus Estimate for 2026 and 2027 indicates revenue growth of around 4.1% and 44.6%, respectively.
Image Source: Zacks Investment Research
Declining Mobile Revenues Creates Near-Term Headwind for NVTS
NVTS is deliberately reducing its exposure to mobile and low-end consumer applications as part of its “Navitas 2.0” transformation. In the second quarter of 2026, mobile revenues declined both sequentially and year over year, and management said the company expects its mobile and low-end consumer business to become insignificant by the end of 2026. Management also noted that the reduction in mobile revenues is happening faster than previously expected, with the transition now about one quarter ahead of plan.
This creates a near-term revenue headwind because NVTS is reducing an existing source of sales before its newer high-power markets are fully scaled. The company expects this gap to be filled by AI infrastructure, grid and energy infrastructure, performance computing and other high-power applications. While the shift might improve the company’s revenue mix over time, the decline creates a near-term headwind that must be offset by faster growth in AI infrastructure and other high-power markets.
NVTS' Premium Valuation Warrants a Cautious Approach
Navitas Semiconductor is currently trading at a high price-to-sales (P/S) multiple compared with the Zacks Electronics - Semiconductors industry. Navitas Semiconductor’s forward 12-month P/S ratio sits at 50.55X, significantly higher than the industry’s forward 12-month P/S ratio of 5.25X. The Zacks Value Score of F also suggests that NVTS stock is overvalued.
NVTS’ Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Navitas Semiconductor stock trades at a higher P/S multiple compared with other industry peers, including Synaptics, Amkor Technology and Ambarella. At present, Synaptics, Amkor Technology and Ambarella have P/S multiples of 3.51X, 1.67X and 6.36X, respectively.
Conclusion: Hold NVTS Stock Right Now
Navitas Semiconductor is seeing strong growth in its high-power business as AI data centers require more efficient power solutions. Management expects AI infrastructure to account for more than one-third of total sales by the end of 2026, while the shift toward 800V power architecture and new GaN and SiC products could support further growth as more customer programs move toward production.
However, NVTS faces near-term pressure from the decline in mobile and low-end consumer revenues, which management expects to become insignificant by the end of 2026. Further, Navitas Semiconductor’s premium valuation warrants a cautious approach to the stock.
Navitas Semiconductor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.