GaN Power ICs

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Better AI Stock: Navitas Semiconductor vs. CoreWeave
The Motley Fool· 2025-09-16 07:37
Core Investment Opportunities - Navitas and CoreWeave represent two distinct investment approaches in the rapidly growing AI market [1][2] - Navitas has partnered with Nvidia to supply power-efficient chips for next-gen data centers, while CoreWeave offers cloud-based access to Nvidia's GPUs [1][2] Navitas Overview - Navitas' stock price increased from a record low of $1.52 in April to approximately $6 following its partnership with Nvidia [2] - The company primarily generates revenue from gallium nitride (GaN) and silicon carbide (SiC) power chips, which are used in various applications including EV chargers and data center power supplies [4][5] - Revenue more than doubled in 2023 but is expected to decline by 42% in 2025 due to macroeconomic challenges and inventory adjustments [6][7] - Analysts project a modest revenue increase of 9% in 2026, followed by a significant jump of 79% to $95 million in 2027, but profitability is not expected until after 2026 [6][7] CoreWeave Overview - CoreWeave transitioned from Ethereum mining to AI processing, investing $100 million in Nvidia's H100 GPUs to expand its operations [8] - The company operates over 250,000 GPUs across 33 data centers, significantly increasing from just three data centers at the end of 2022 [9] - Revenue surged from $16 million in 2022 to $1.92 billion in 2024, with a projected CAGR of 106% from 2024 to 2027, reaching $17.27 billion [10] - CoreWeave's market cap stands at $60.7 billion, trading at 11 times this year's sales, indicating a more reasonable valuation compared to Navitas [10] Comparative Analysis - CoreWeave is identified as a stronger investment option due to its direct exposure to the AI market, robust growth potential, and lower valuations compared to Navitas [11] - While Navitas may see sales growth in 2027, potential production issues and delays could hinder its performance [11]
Navitas' GaN Power ICs Gaining Traction: What's Fueling It?
ZACKS· 2025-07-04 15:06
Core Insights - Navitas Semiconductor (NVTS) is a significant player in the next generation of power semiconductors, particularly in GaN technologies, which are driving innovation and growth in the semiconductor market [1][2] - The GaN semiconductor device market is projected to grow at a compound annual growth rate of 6.1% from 2023 to 2028, attracting investments from major tech firms like NVIDIA and Tesla [1] - Navitas' GaN business revenues increased over 50% year-over-year in 2024, indicating strong momentum across various high-growth markets [3][8] Company Performance - Navitas has achieved over 180 GaN charger design wins in 2024 and supplies all top 10 global smartphone manufacturers, showcasing its strong position in the Mobile & Consumer segment [3][8] - The company is expanding into emerging markets through strategic partnerships, such as with Transsion in Africa and Jio in India [3] - In the Electric Vehicle sector, Navitas secured its first design win with Changan Auto for an onboard charger, featuring 6kW/L power density and 96% efficiency [4] Product Development - Navitas is set to launch new 80 - 120V GaN devices in 2025, targeting the 48V DC-DC converter market [4] - The company introduced bidirectional GaN ICs for solar applications, with the first use case expected in solar microinverters by late 2025 [4] Competitive Landscape - Power Integrations' GaN business is also experiencing growth, contributing to a 15% year-over-year revenue increase in Q1 2025, with a focus on high-voltage applications [5] - STMicroelectronics is expanding its GaN technology through a partnership with Innoscience to accelerate development and manufacturing [6] Stock Performance - Year-to-date, Navitas' stock has surged 79.3%, outperforming the industry and S&P 500 growth rates of 13.4% and 5.4%, respectively [7] - The stock trades at a forward 12-month price-to-sales (P/S) ratio of 15.0X, significantly higher than the industry average of 7.5X [9] Financial Estimates - The Zacks Consensus Estimate for NVTS' loss per share has decreased over the past 60 days, indicating a potential shift in financial outlook [10]