NVTS vs. AMD: Which Semiconductor Stock Has an Edge Right Now?

Core Insights - Navitas Semiconductor (NVTS) and Advanced Micro Devices (AMD) are key players in the semiconductor industry, particularly in the context of the shift towards AI-driven computing [1][2] - Both companies are investing heavily in next-generation semiconductor chips for AI applications, but their investment outlooks differ significantly [3] Navitas Semiconductor Overview - Navitas Semiconductor is focusing on high-power markets, particularly through its inclusion in NVIDIA's 800-volt AI factory ecosystem, which requires advanced power electronics [4] - In Q3 2025, NVTS reported revenues of approximately $10.1 million, a decline of over 50% year-over-year due to weak demand in its mobile business [6] - For Q4 2025, NVTS projects revenues to be around $7 million, indicating a continued decline, with a Zacks Consensus Estimate for 2026 revenues at $38.36 million, reflecting a year-over-year decrease of 15.6% [7][10] Advanced Micro Devices Overview - AMD's Data Center revenues surged by 39% year-over-year in Q4 2025, reaching $5.4 billion, driven by strong demand for EPYC CPUs and AI GPUs [11] - The company has seen significant growth in its EPYC server CPUs, with over 500 new AMD-based instances launched by hyperscalers, increasing total EPYC-powered instances by more than 50% year-over-year [12] - AMD's AI GPU business is also expanding, with record revenues from the Instinct GPU line, and management anticipates that the Data Center AI business could reach tens of billions in annual revenues by 2027 [13][14] Financial Performance and Valuation - AMD's projected revenues for Q1 2026 are around $9.8 billion, indicating a year-over-year growth of 32%, with a Zacks Consensus Estimate for 2026 revenues at $45.30 billion, a 30.8% increase [14] - In contrast, NVTS is trading at a forward sales multiple of 45.93X, while AMD trades at a more attractive 7.197X, suggesting a valuation advantage for AMD [22] - Over the past six months, AMD shares have increased by 16.8%, while NVTS shares have risen by 20% [19] Conclusion - While both companies are positioned to benefit from the growth in AI and data center markets, AMD currently shows stronger growth prospects and a more favorable valuation compared to NVTS [23][24]