Key Takeaways:
Navitas Semiconductor Corp. reported second-quarter revenue of $10.5 million, beating the $9.97 million average analyst estimate, as gallium nitride and silicon carbide sales for AI data centers more than doubled their contribution.
"The transition to high-power markets is accelerating faster than we anticipated," Chief Executive Officer Chris Allexandre said in a statement. "Our expanding backlog and record book-to-bill ratio reflect stronger demand across AI data centers and grid infrastructure."
The non-GAAP loss of 4 cents a share matched analyst expectations, while gross margin expanded 100 basis points from a year earlier to 39.5%. Revenue declined 27% from a year ago as the company wound down its mobile charging business, but climbed 22% sequentially. High-power products accounted for the majority of sales, with AI infrastructure and grid applications expected to represent more than one-third of fourth-quarter revenue.
The results mark a turning point for the El Segundo, California-based company, which is betting its GaN and SiC chips will become essential components in next-generation 800-volt AI data center architectures. Navitas said it is shipping production samples for platforms expected to begin ramping in 2027. The company ended the quarter with $557 million in cash after raising about $373 million during the period, giving it a multi-year runway to fund the transition.
AI Data Center Push Gains Traction
Navitas deepened its collaboration with Nvidia's MGX ecosystem, recently demonstrating an 800-volt-to-6-volt power delivery board designed to overcome power bottlenecks in dense AI computing racks. The company also announced a 1.2-kilovolt JFET product line scheduled for release by early 2027, which it estimates could address an incremental $1 billion market across AI data centers, solid-state transformers and grid infrastructure.
Management expects mobile and low-end consumer revenue to become insignificant by year-end, completing the company's transformation into a pure-play high-power semiconductor supplier. For the third quarter, Navitas forecast revenue of $13 million to $14 million, with the midpoint of $13.5 million implying a return to year-over-year growth. Non-GAAP gross margin is projected at 38.7% to 40.7%.
The guidance raise signals management expects AI-driven demand to sustain its momentum. Investors will watch the Q3 earnings call for updates on Nvidia 800-volt design wins and the GlobalFoundries U.S. GaN manufacturing ramp, which is targeted for late 2026.
This article is for informational purposes only and does not constitute investment advice.
