NVTS Q2 Earnings Call Highlights AI Power Shift And Growth Outlook

Navitas Semiconductor Corporation NVTS used its second-quarter earnings call to highlight a major business transition toward high-power markets, with management pointing to AI infrastructure as a central growth driver.

The company outlined progress on its Navitas 2.0 transformation, including stronger revenue momentum, expanding product opportunities, and a shift away from mobile and low-end consumer exposure.

NVTS Targets AI Infrastructure Growth

CEO Chris Allexandre said Navitas has accelerated its transition into a high-power semiconductor company, with revenues increasingly driven by AI data center and energy infrastructure opportunities. He noted that high-power markets grew more than 50% year over year in the quarter.

Allexandre highlighted that second-quarter revenues increased 22% sequentially to $10.5 million, supported by higher demand across high-power markets. The company expects mobile and low-end consumer revenue contribution to become insignificant by year-end.

Management emphasized that AI infrastructure is expected to represent more than one-third of total sales by the end of the year, supporting continued growth momentum into 2027.

Navitas Builds GaN and SiC Position

Navitas said its advantage comes from offering both gallium nitride (GaN) and high-voltage silicon carbide (SiC) solutions across AI power systems. Allexandre said that this combination allows the company to participate across multiple stages of data center power evolution.

NVTS discussed several AI infrastructure opportunities, including AC/DC power supplies, DC/DC conversion systems, battery backup units and future 800V architectures. Management said that these programs involve multiple customers and platforms rather than a single deployment opportunity.

Navitas also introduced additional SiC products, including JFET technology aimed at AI data centers and energy grid infrastructure. Management said the product line expands its addressable market by nearly $1 billion by 2030.

NVTS Advances 800V Data Center Roadmap

During Q&A, a Needham analyst asked about potential delays to 800V AI data center architectures. Allexandre said that the company’s outlook remains supported by multiple adoption stages, including earlier SiC and GaN opportunities before native 800V systems.

Management described a phased transition, beginning with higher-density AC/DC power systems and progressing toward broader 800V adoption across computing architectures. Allexandre said that the company expects several programs across hyperscalers, OEMs and ODMs to contribute over time.

Navitas also noted that AI infrastructure growth is already occurring ahead of the full 800V transition, with current demand supported by increasing power requirements in data centers.

Navitas Expands Technology and Capacity

Navitas continued investing in its technology roadmap, including new SiC products, GaN platforms, and expanded manufacturing partnerships. Management said its partnership with Magnachip supports broader adoption of GeneSiC technology and additional supply chain flexibility.

CFO Tonya Stevens said the company ended the quarter with $557 million in cash and no debt after raising approximately $373 million during the period. The additional capital is intended to support capacity expansion, supply initiatives, and strategic investments.

The company also increased inventory and prepaid expenses to support anticipated AI data center demand and maintain supply readiness for future customer programs.

NVTS Raises Q3 Outlook

Navitas guided third-quarter 2026 revenues to $13.5 million, plus or minus $0.5 million, indicating a 28% sequential increase at the midpoint. Management expects growth to come from high-power markets and a continued shift in revenue mix.

Gross margin guidance for the third quarter was set at 39.7%, plus or minus 100 basis points, as the company continues moving toward higher-value products. Operating expenses are expected between $15.5 million and $17.5 million as Navitas increases targeted investments.

The company reported second-quarter non-GAAP loss per share of $0.04, in line with the Zacks Consensus Estimate. Revenues of $10.5 million exceeded the Zacks Consensus Estimate of $10 million.

Navitas Semiconductor Corporation Price, Consensus and EPS Surprise

Navitas Semiconductor Corporation price-consensus-eps-surprise-chart | Navitas Semiconductor Corporation Quote

Navitas Focuses on Execution Ahead

Management said that the Navitas 2.0 transformation is substantially complete, with the focus shifting toward execution, scaling operations and progressing toward profitability. Allexandre emphasized that growth opportunities span multiple customers, platforms and power applications.

The company’s near-term priorities remain revenue expansion, gradual gross margin improvement, and disciplined investment in products supporting AI infrastructure demand.

Zacks Signals Point to a Balanced View

NVTS carries a Zacks Rank #3 (Hold) at present, which indicates the stock currently has a neutral Zacks Rank classification. The Zacks Rank focuses on earnings estimate revisions and can change as analysts update their outlook following new financial information. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company currently has a Momentum Score of A, a Growth Score of C, a Value Score of F and a VGM Score of D. The Zacks Style Score evaluates value, growth, momentum and combined characteristics, with higher grades representing stronger relative attributes within each style category.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research