TORRANCE, Calif., Oct. 13, 2025 (GLOBE NEWSWIRE) -- Navitas Semiconductor (Nasdaq: NVTS), the industry leader in next-generation GaNFast™ gallium nitride (GaN) and GeneSiC™ silicon carbide (SiC) power semiconductors, announced progress in its development of advanced medium and high 800 VDC voltage GaN and SiC power devices to enable the 800 VDC power architecture announced by NVIDIA for next-generation AI factory computing platforms. With the emergence of the ‘AI factory’, a new class of data center purpose ...

Core Insights - Gallium Nitride (GaN) has emerged as one of the most disruptive semiconductor technologies of the decade, with a projected market size of $3 billion by 2030 [2] - Consumer electronics, particularly fast charging, are early adopters driving sales growth and ecosystem maturity, expected to account for over 50% of the total power GaN device market by 2030 [2] - The power GaN market is entering a decisive phase, driven by accelerated investments, strategic acquisitions, and ongoing innovation across the value chain [2] Automotive Market Expansion - The next wave of expansion is anticipated in the automotive market, with a remarkable compound annual growth rate (CAGR) of 73% from 2024 to 2030, driven by the shift towards electrification and advanced driver-assistance systems [4] - GaN devices are now widely used in LiDAR systems, and onboard chargers (OBC) are expected to be the next sales driver [4] - Non-automotive DC chargers and traction inverters are maturing with the emergence of more reference designs [4] Data Center and AI Applications - Hyperscale data centers are seeking energy-efficient solutions to manage increasing workloads, with NVIDIA collaborating with leading wide bandgap chip manufacturers to integrate SiC and GaN technologies into its 800V high-voltage direct current (HVDC) power systems [4] - GaN's unique advantages in power conversion efficiency and circuit board space optimization are making it essential for AI servers and networking equipment [4] - The telecommunications sector is also expected to see significant growth, with a projected CAGR of 53% from 2024 to 2030 [4] Competitive Landscape - The power GaN ecosystem is transitioning from a mature phase to one shaped by consolidation and vertical integration, driven by integrated device manufacturers (IDMs) [6] - Infineon has strengthened its position in GaN through the $830 million acquisition of GaN Systems, while Renesas acquired Transphorm for $339 million [6] - Innoscience leads the market with a 30% share in 2024, focusing on fast charging, automotive, data centers, and home appliances [6] - Other key players include Navitas, Power Integrations, and EPC, each expanding their product offerings and market presence [6][7] New Entrants and Future Outlook - New entrants like Samsung and onsemi are expected to intensify competition in the GaN market, with onsemi preparing to enter the GaN space soon [7] - The report confirms that the power GaN ecosystem is evolving into a strategically driven market, with increasing competition solidifying GaN's role as a core pillar of next-generation power electronics [7]

Core Insights - Navitas Semiconductor (NVTS) shares have declined 18.3% over the past month, underperforming the Zacks Computer and Technology sector, which returned 3% [1] - The decline is attributed to weak second-quarter 2025 results and a disappointing outlook, with shares dropping 14% since the Q2 results were reported on August 4 [1] Financial Performance - For Q2 2025, Navitas reported a non-GAAP loss of 5 cents per share, matching the Zacks Consensus Estimate and an improvement from a loss of 7 cents per share in the same quarter last year [2] - Revenues fell 29.2% year-over-year to $14.5 million, slightly missing the Zacks Consensus Estimate by 0.23% [2] - The third-quarter 2025 revenue guidance is projected at $10 million (+/- $0.5 million), impacted by China tariff risks and a strategic shift away from lower-margin mobile business [3] Market Outlook - The Zacks Consensus Estimate for Q3 2025 revenues is set at $9.99 million, indicating a 53.94% decline from the previous year [4] - The consensus for Q3 2025 loss is estimated at 5 cents per share, which is a penny wider than the previous estimate [4] Year-to-Date Performance - Year-to-date, Navitas shares have surged 93.9%, outperforming the broader sector and competitors like On Semiconductor and Wolfspeed, which saw declines of 19% and 79.7%, respectively [5] - Despite recent declines, NVTS stock is trading above the 200-day moving average, indicating a bullish trend [8] Growth Opportunities - Navitas is positioned to benefit from the growing demand for power semiconductors, particularly in AI data centers and energy infrastructure, representing a $2.6 billion annual market opportunity [13] - The company plans to reduce operating expenses from $16.1 million in Q2 2025 to approximately $15.5 million in Q3 2025 to enhance capital efficiency [14] Strategic Partnerships - Navitas has established partnerships with major companies like NVIDIA and Powerchip, which are expected to enhance its market position and operational efficiency [15][17] - The collaboration with Powerchip aims to manufacture 200mm GaN chips, which will significantly increase chip production capacity and improve gross margins [17] Market Valuation - Navitas shares are currently considered overvalued, with a forward Price/Sales ratio of 23.77X compared to the sector average of 6.78X [19] - The company faces near-term challenges due to sluggishness in solar, EV, and industrial markets, along with tariff impacts and the removal of tax credits [22]

Core Insights - Navitas Semiconductor (NVTS) is expected to report second-quarter 2025 net revenues between $18 million and $20 million, with a Zacks Consensus Estimate of $14.5 million, indicating a year-over-year decline of 29.1% [1][2] - The consensus estimate for loss is 5 cents per share, unchanged over the past 30 days, compared to a loss of 7 cents per share in the same quarter last year [2] Company Performance - NVTS shares have increased by 97.8% year-to-date, outperforming the broader Zacks Computer and Technology sector's return of 11.4% and the Zacks Electronics Semiconductors industry's return of 16.7% [6] - The stock is currently trading at a forward Price/Sales ratio of 16.92X, significantly higher than the sector's average of 6.71X, indicating a stretched valuation [10] Market Dynamics - The company is facing challenges due to sluggishness in solar, electric vehicle (EV), and industrial markets, which are expected to negatively impact second-quarter results [5][9] - Uncertainty over tariffs and trade issues between the United States and China is also a headwind for Navitas [5] Growth Prospects - Navitas is expanding its GaN technology offerings, targeting AI data centers and EV power systems, with significant investments from NVIDIA and Tesla [4][9] - The company is launching new 80-120V GaN devices in 2025 aimed at the 48V DC-DC converter market, which could disrupt traditional power electronics architectures [17] - In the EV sector, NVTS has secured over 40 design wins globally and has a rapidly expanding $900 million EV pipeline [18] Competitive Landscape - Navitas faces significant competition from companies like Wolfspeed and Power Integrations, which are investing heavily in wide bandgap technologies [20] - Power Integrations offers a GaN portfolio with unique high-voltage devices, while Wolfspeed is expanding its manufacturing capacity with advanced technology [21] Conclusion - The muted revenue growth outlook and stretched valuation suggest that NVTS may be a risky investment at this time, with a Zacks Rank of 4 (Sell) indicating that investors should be cautious ahead of the second-quarter results [22]

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]