Navitas Is Positioned for Growth Acceleration as Strategic Pivot Delivers Results

In 2025, Navitas (NVTS) announced a strategic pivot that was called “Navitas 2.0.” This entailed a focus on high-power markets like AI data centers, energy, and grid infrastructure. However, this pivot has had little impact on NVTS stock, which has traded sideways over the last 52 weeks. 

That said, the business continues to progress in the right direction in an attractive market. According to Navitas, the focus on high-power markets implies a serviceable addressable market of $3.5 billion by 2030. Therefore, there is ample headroom for growth, and the company’s backlog has been swelling. 

In an important development, Navitas announced its latest 24 kW, 800 V-to-12 V DC-DC power delivery board. This has been developed in collaboration with Nvidia (NVDA) and will “support the NVIDIA MGX ecosystem and advance 800 VDC power architectures for AI data centers.” 

There is no immediate impact of this collaboration on revenues. However, in a bull case, the impact on backlog and growth can be significant if Navitas becomes a primary GaN supplier across multiple platforms. Additionally, this collaboration renews the company’s strategic pivot away from low-end consumer business to high-power markets. 

About Navitas Stock

Headquartered in Torrance, Navitas designs, develops, and markets next-generation power semiconductors. This includes gallium nitride power integrated circuits, high-voltage silicon carbide devices and associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. 

The company’s end markets include artificial intelligence data centers, energy and grid infrastructure, performance computing, and industrial electrification. As of December 2025, the company has shipped over 300 million gallium nitride devices and nearly 30 million silicon carbide devices globally. Innovation is a differentiating factor for Navitas, with the company having 300 issued or pending patents globally. 

For Q2 FY26, Navitas reported revenue of $10.5 million. For the same period, the company’s loss from operations was $27.2 million. While cash burn is likely at an early stage of growth, Navitas ended Q2 with a cash buffer of $557.4 million. 

However, even with the guidance for potential growth acceleration in Q3, NVTS stock has trended higher by just 6.4% in the last six months. This seems like a good opportunity to accumulate before financial metrics improve meaningfully. 

Growth Acceleration in 2027 and Beyond

In Q2 FY26, Navitas reported sequential revenue growth, but a year-on-year decline. However, this was primarily on the back of exiting the mobile and low-end consumer segment. 

For Q3, Navitas expects “sequential growth of 28% coupled with further margin expansion.” Additionally, the company expects the impact of AI Infrastructure markets to translate into “strong momentum into 2027.”  It’s therefore likely that NVTS stock will trend higher after an extended period of consolidation. 

It’s also worth noting that the company’s technical partnership with GlobalFoundries U.S. (GFS) is to ramp 8” GaN in 2027-28. With customer sampling and qualification expected before the end of 2026, the company is well positioned to benefit in terms of growth acceleration. 

In October 2026, Navitas also completed the acquisition of Claros, a power management solutions company that’s developing integrated voltage regulators. This acquisition broadens the company’s AI infrastructure portfolio and is likely to support growth. 

Therefore, with a strong cash buffer, Navitas is well positioned for healthy upside in revenue in the next 24 to 36 months. Improving margins will be another potential catalyst for stock upside. 

What Do Analysts Say About NVTS Stock?

Based on eight analysts with coverage, NVTS stock has a consensus “Hold” rating. While one analyst has a “Strong Buy” rating for the stock, one has a “Moderate Buy,” five have a “Hold,” and one analyst has a “Strong Sell” rating. 

The mean price target of $14.07 represents potential upside of 34.6% from current levels. Further, the most bullish price target of $21 suggests that NVTS stock could climb as much as 101% from here.

On the date of publication, Faisal Humayun Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.