Navitas Semiconductor Corp. (NASDAQ: NVTS) saw its stock climb 5.76% to close at $17.45 on Friday, with nearly 30 million shares traded, as investors positioned ahead of the company's first-quarter earnings report due Tuesday afternoon.
The Torrance, California-based chipmaker is entering a critical juncture as it pivots toward high-power gallium nitride and silicon carbide chips designed for AI data centers, grid infrastructure, and industrial applications. The shift comes after a challenging fourth quarter that saw revenue slide to $7.3 million from $10.1 million in the prior quarter and $18.0 million a year earlier. GAAP operating loss widened to $41.4 million.
For the first quarter, management guided revenue in the range of $8.0 million to $8.5 million, signaling a modest sequential recovery but still well below year-ago levels. The company's stock has rallied recently as investors focus on the long-term potential of its power delivery technology, particularly the 800-volt direct-current (DC) platform aimed at next-generation AI infrastructure.
In March, Navitas launched an 800V-to-6V DC-DC power delivery board targeting NVIDIA-based AI systems. CEO Chris Allexandre highlighted the design's potential to "lower system cost and power losses." However, NVIDIA's 800 VDC data-center architecture is not expected to reach one-megawatt IT racks until 2027, leaving a gap between current revenue and future expectations.
The company's high-power markets accounted for the majority of quarterly revenue for the first time, a milestone management is keen to emphasize. Yet, Navitas has been careful to warn that "design wins" in its customer pipeline should not be mistaken for actual orders or near-term sales. The company's caution reflects the operational, technical, and market uncertainties surrounding the adoption of 800V systems.
Navitas operates in a competitive landscape, with NVIDIA's 800 VDC ecosystem including heavyweights like Infineon, Monolithic Power Systems, and Texas Instruments. The smaller player is part of a crowded field, not a niche player. Power-chip stocks have recently gained investor attention, with Barron's highlighting a pivot toward the sector and analyst Rick Schafer pointing to 800-volt power as a potential growth catalyst starting in 2027.
Adding to corporate developments, Navitas appointed Gregory M. Fischer, a Broadcom veteran with over four decades in semiconductors, as an independent director effective April 13. Chairman Richard Hendrix described the moment as a "pivotal time for Navitas." The company also set a virtual annual meeting for June 25, where shareholders will vote on a proposal to declassify the board, moving to annual elections from the current staggered system.
Tuesday's earnings call, scheduled for 2:00 p.m. Pacific on May 5, will be closely watched. Analysts, according to MarketScreener, carry a Hold consensus with an average target price of $8.15, well below Friday's close. The report must demonstrate sequential revenue growth and convince investors that the AI momentum is more than a distant 2027 narrative overshadowed by 2026 losses.
