Navitas (NVTS), ON Semiconductor (ON) And 3 More Stocks You Need To Be Watching

Core Viewpoint - Several semiconductor companies are highlighted as strong investment opportunities in the AI space, particularly as they pivot towards new AI data center architectures, despite current declines in the EV market [2][4]. Group 1: Navitas Semiconductor (NVTS) - Navitas Semiconductor is experiencing a revenue decline but is expected to rebound significantly as new Nvidia data center architectures drive demand for advanced power management [4][8]. - Wall Street forecasts suggest Navitas' revenue could increase from $46 million in 2025 to $65 million in 2027 and $122 million in 2028 as the company shifts focus from low-margin businesses to data centers [8][6]. Group 2: On Semiconductor (ON) - On Semiconductor, valued at $22 billion, has flat performance year-to-date but is projected to see a strong rebound in EPS from $2.91 this year to $4.03 in 2027 and $5.36 in 2028, driven by a recovery in the automotive sector [5][9]. - The company is currently down 20% since mid-February, presenting a potential buying opportunity as it is expected to benefit from growth in automotive and industrial markets [9][10]. Group 3: Aehr Test Systems (AEHR) - Aehr Test Systems, with a market cap of $1.2 billion, has seen a 75% increase year-to-date and is expected to shift from declining revenues of $66 million in 2024 to a significant rebound in 2027, driven by new data center demands [16][18]. - The company specializes in testing and burn-in equipment for new compounds, indicating strong potential for revenue growth in optics and ASICs [17][19]. Group 4: STMicroelectronics (STM) - STMicroelectronics, a $30 billion company, has seen a drop in EPS from $4.46 at the peak of EVs in 2023 to $0.53, but has opportunities to turn around its narrative with a diversified portfolio that includes photonics and power semiconductors [21][22].