Navitas Q3 2025 slides: GaN and SiC technologies target $3B AI data center opportunity

Introduction & Market Context

Navitas Semiconductor (NASDAQ:NVTS) presented its strategic focus on the AI data center market on August 4, 2025, highlighting how its gallium nitride (GaN) and silicon carbide (SiC) power semiconductor technologies are positioned to capitalize on the massive power demands of next-generation AI infrastructure.

The company, which describes itself as the "only pure-play next-gen power semiconductor player," is targeting what it projects as a $3 billion annual opportunity in AI data centers by 2030, with particular emphasis on the emerging 800V data center architecture that promises higher efficiency for power-hungry AI applications.

Navitas shares closed at $7.96 on August 4 and rose 1.46% in aftermarket trading to $8.08, suggesting cautious optimism from investors about the company’s strategic direction despite current financial challenges.

Executive Summary

Founded in 2014, Navitas has shipped over 300 million units of its next-generation power semiconductors, primarily focusing on the mobile charger market where it has established relationships with major OEMs. The company now aims to replicate this success in the AI data center space, where power demands are increasing dramatically.

As shown in the following revenue growth chart, Navitas has grown from just $2 million in revenue in 2019 to $84 million in 2024, though its Q1 2025 earnings report showed quarterly revenue of only $14 million with a loss per share of $0.06.

The company maintains a strong balance sheet with $75 million in cash and no debt as of Q1 2025, providing runway to pursue its growth strategy in AI data centers while continuing to serve its established markets in mobile/consumer and new energy applications.

AI Data Center Opportunity (SO:FTCE11B)

Navitas’ presentation emphasized the dramatic increase in power demands driven by AI infrastructure, projecting a 100x increase in server rack power requirements. While traditional data centers typically operated with 10-20kW server racks, today’s AI data centers are moving to >100kW racks, and future AI installations are targeting >1MW per rack.

The following slide illustrates this power demand escalation and the infrastructure changes required to support it:

The company highlighted NVIDIA (NASDAQ:NVDA)’s target of 1MW server racks as evidence of this trend, noting that such massive power requirements create significant challenges for power conversion efficiency and density.

Technology Differentiation

Navitas positions its GaN and SiC technologies as superior alternatives to traditional silicon for addressing the power challenges in next-generation data centers. The presentation detailed specific advantages of each technology:

For the emerging 800V data center architecture, Navitas claims its technologies offer particular advantages in efficiency and power density. The company’s presentation compared three data center architectures:

According to Navitas, the transition to 800V data centers represents a $2.6 billion annual opportunity by 2030, with significant potential for GaN and SiC adoption. The company claims its technologies can address power conversion needs across all stages of the data center power delivery chain.

Detailed Financial Analysis

While Navitas’ presentation painted an optimistic picture of future growth opportunities, its current financial performance reflects a company still in the investment phase. The Q1 2025 earnings report showed revenue of $14 million, matching analyst expectations, with a loss per share of $0.06.

The company provided Q2 2025 guidance of $14-15 million in revenue with a gross margin forecast of 38.5% (±50 basis points), suggesting relatively flat near-term growth. Management expects growth to resume in late 2025, driven by increased demand in solar microinverters and EV applications, with a target of EBITDA breakeven by 2026.

The following slide quantifies the potential market opportunity in 800V data centers, projecting significant growth from 2025 to 2030:

This growth projection is further broken down between 48V and 800V data centers in the following chart:

Competitive Industry Position

Navitas highlighted its competitive positioning across different power stages in data center architecture, claiming strengths in ultra-high voltage SiC, high voltage GaN/SiC, and mid-voltage GaN applications.

The company faces competition from established semiconductor players including Infineon (OTC:IFNNY), ST/Rohm, TI, and MPS, but claims differentiation through its focus on next-generation technologies and its intellectual property portfolio of over 300 patents issued or pending.

The following slide illustrates Navitas’ positioning across different power conversion stages:

The company has identified a broad range of potential customers for its 800V data center solutions, including both infrastructure providers like Schneider Electric (EPA:SCHN) and Siemens (ETR:SIEGn), and major technology companies including NVIDIA, AWS, Google (NASDAQ:GOOGL), and Meta (NASDAQ:META).

Forward-Looking Statements

Navitas’ presentation emphasized long-term growth opportunities, particularly in AI data centers, but investors should note several challenges and risks:

1. The semiconductor industry is currently facing inventory corrections that could impact short-term demand

2. The company remains unprofitable, with a loss per share of $0.06 in Q1 2025

3. The projected growth in 800V data centers depends on industry adoption of this architecture

4. Competition in the power semiconductor space is intense, with multiple established players

CEO Gene Sheridan highlighted the company’s technological advancements during the Q1 earnings call, stating, "GaN BDS eliminates dozens of large and expensive components... resulting in size, weight, cost, and power loss improvements of 30% or more." CFO Todd Glickman expressed confidence in future growth, saying, "We expect our significant design wins and technology advances to put us in a strong position to drive growth later this year and throughout 2026."

While Navitas has successfully established itself in the mobile charger market with over 400 GaN chargers in mass production, the company’s ability to replicate this success in the more complex and demanding data center market remains to be proven. Investors should weigh the substantial market opportunity against execution risks and the company’s current financial performance.

Full presentation:

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