NVTS vs. ADI: Which Semiconductor Stock Should You Buy Right Now?

Core Insights - Navitas Semiconductor (NVTS) and Analog Devices (ADI) are positioned to benefit from the increasing demand for data centers, AI infrastructure, and energy-efficient technologies [1][3] Company Overview - Navitas Semiconductor specializes in Gallium nitride (GaN) and Silicon carbide (SiC) chips for next-generation AI data centers and energy systems [2] - Analog Devices manufactures a range of semiconductor devices, including analog, mixed signal, and digital signal processing integrated circuits [2] Growth Prospects - Both NVTS and ADI are expected to benefit from long-term growth in data centers and advanced technology infrastructure [3] - Navitas is focusing on high-power markets and has been included in NVIDIA's new 800-volt AI factory ecosystem, which enhances its market position [4] - ADI's data center segment has crossed a $1 billion annual run-rate, reflecting a year-over-year increase of over 50% for three consecutive quarters, driven by AI infrastructure spending [10][11] Financial Performance - In Q3 2025, Navitas reported revenues of approximately $10.1 million, down over 50% from the previous year due to weak demand in its mobile business [6] - For Q4 2025, Navitas projects revenues of around $7 million, indicating a further decline [7] - ADI expects revenues of $3.1 billion for Q1 2026, with a Zacks Consensus Estimate for fiscal 2026 revenues at $12.89 billion, indicating a year-over-year growth of 16.9% [14] Market Challenges - Navitas is deprioritizing its lower-margin mobile business, which negatively impacts its near-term revenue outlook [6][7] - ADI is experiencing strong demand for high-throughput connectivity and power delivery solutions, which are critical for AI data centers [12] Valuation and Investment Outlook - Analog Devices trades at a forward sales multiple of 11.28X, significantly lower than Navitas Semiconductor's 63.2X, making ADI more attractive for investors seeking stability [22] - In the past three months, ADI shares have increased by 23.1%, while NVTS shares have decreased by 27.1% [20] - The Zacks Consensus Estimate for NVTS's 2026 earnings is a loss of $0.19 per share, while ADI's is a profit of $10.01 per share, indicating a more favorable outlook for ADI [17][19] Conclusion - Currently, ADI is recommended as a buy due to its strong momentum in the data center business and favorable growth outlook, while NVTS is advised to hold due to its near-term uncertainties [23][24][25]