Semiconductor chips that can perform much faster to solve problems and conduct analysis are now critical components at data centers.
Navitas Semiconductor (NASDAQ: NVTS), which went public only in 2021, has benefitted from the rapid rise in the adoption of artificial intelligence as the manufacturer of power semiconductor chips. The company’s valuation has reached $4 billion quickly.
Power semiconductor chip making companies have emerged to the forefront as data centers have grown in both size and speed. These energy-intensive data centers need quicker compute power as the problems it solves have become more complex.
“Rising rack power densities are accelerating a shift from alternating to direct current architectures. Industry consensus is that direct current adoption is inevitable, with initial deployments likely in 1H27-1H28,” wrote BofA Securities analysts in a research note.
Shares of Navitas, which was founded in 2014 and whose speciality is in manufacturing in gallium nitride semiconductors, have risen exponentially during the past year, skyrocketing by 901% as investors sought out sectors involved in the AI boom.
Navitas designs and manufactures semiconductor chips by using gallium nitride (GaN) and silicon carbide (SiC) technologies. Those technologies are needed to conduct power conversion and charging. Gallium is the metal that allows for smartphones and laptops to be charged at a quicker speed and helps make data centers run faster and more efficiently.
Partnership with Nvidia
Last May Navitas said it is creating a new set of power semiconductor chips for Nvidia (NASDAQ: NVDA). These new devices will support the AI infrastructure designed by Nvidia and will enable 800-volt power for the latest AI systems while lowering the amount of copper needed.
These devices will have greater efficiency and scalability and will power IT racks. Additional converters are not needed, according to Navitas.
“As Nvidia drives transformation in AI infrastructure, we’re proud to support this shift with advanced GaN and SiC power solutions that enable the efficiency, scalability, and reliability required by next-generation data centers,” said CEO Chris Allexandre. “As the industry moves rapidly toward megawatt-scale AI computing platforms, the need for more efficient, scalable, and reliable power delivery becomes absolutely critical. The transition from legacy 54 V architectures to 800 VDC is not just evolutionary, it’s transformational.”
Navitas reported total revenue was $7.3 million in the fourth quarter of 2025, compared to $10.1 million in the third quarter of 2025 and $18 million in the fourth quarter of 2024. The company estimates first quarter 2026 net revenue is expected to increase to between $8 million and $8.5 million.
Last year Navitas also announced that the company would partner with BrightLoop Converters, a French power electronics company, to help develop its hydrogen fuel-cell chargers that will be used for agricultural transportation equipment.
The compute power used by AI requires both speed and efficiency as companies and users expect more complicated problems and tasks to be solved.
As the demand for power chips continues to rise each year, Navitas Semiconductor will benefit as the buildout for AI infrastructure requires more reliable and efficient power delivery.
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