Navitas Semiconductor presented its strategic shift towards high-power solutions for AI infrastructure at Citi's 2026 Global TMT Conference. The company, with a market capitalization of $3.24 billion, has seen its share price rise 110% over the past year and 65% year-to-date, reflecting investor confidence in its new direction.
CEO Chris Allexandre, who joined the company about a year ago, emphasized the company's transformation from a mobile-focused business to one specializing in high-power solutions. The pivot is expected to be completed by the end of 2026, with mobile revenue falling to a low single-digit percentage by year-end. AI infrastructure is projected to account for more than one-third of the company's revenue by the same time.
The company's backlog extends well into 2027, a significant change from the previous 18-month horizon. Navitas Semiconductor expects to close its acquisition of Claros Power in October 2026. The acquisition is expected to become more meaningful in 2028 and 2029, with Claros Power's technology doubling the addressable market.
Navitas Semiconductor's 800-volt architecture has four inflection points: pre-800V/AC-DC replacement, sidecar systems emerging in the first half of 2026, native 800-volt systems inside compute trays expected in early 2028, and solid-state transformers targeted for 2028 and beyond. The company has shipped 350 million GaN units historically and is partnering with GlobalFoundries and X-FAB for GaN and SiC production.
The company's gross margin stands at 38%, and its current ratio is 21.79. Four analysts have revised their earnings upwards for the upcoming period. Navitas Semiconductor's trailing revenue over the last twelve months is $36.53 million, down 46% due to the exit from the lower-margin mobile business.
The data center deployment assumptions for 2030 range from 220 gigawatts to 300 gigawatts. The GaN and SiC opportunity is estimated at about $3.5 billion by 2030, while the JFET technology opportunity is about $1 billion. IVR and VPD solutions are expected to reach $3.5 billion to $4.5 billion, with a combined total addressable market of roughly $8 billion to $9 billion.
Claros Power's core product includes a 3.3-volt entry, sub-1-volt output, 40-amp IVR with no external capacitors or inductors. The company's array architecture includes 50-chip configurations for 2,000 amps and 100-chip configurations for 4,000 amps. Navitas Semiconductor is partnering with Samsung for Claros' 14-nanometer IVR technology.
Chris Allexandre highlighted the power efficiency physics, stating that power equals current multiplied by voltage. He emphasized the importance of leveraging technology disruptions, such as GaN and SiC, to compete with silicon companies. He also distinguished the server and AI markets from consumer markets, stating that the company must win every step of the way in the technology disruptions driving content expansion.
