Is Navitas Semi-Conductor Stock a Buy Now as AI Demand Fuels Massive Rally?

Navitas Semiconductor’s shares have nearly tripled over the past year, surging to $8.48 as of February 24, 2026, up 4.43% intraday amid booming AI data center demand. This power chip specialist, trading at a lofty 28 times its trailing $56 million revenue, is betting big on gallium nitride (GaN) tech to fuel energy-hungry servers.

Company Shift

Founded in 2014, Navitas pioneered GaN power ICs for efficient conversion in smartphones and chargers, but consumer sales have waned with 38% trailing revenue drop.

Now pivoting to AI infrastructure, it eyes data centers needing 98% efficient supplies to cut costs on next-gen chips from Nvidia partners. Q3 2025 revenue fell to $10.1 million from $21.7 million year-prior, with a $19 million loss reflecting the transition pains.

Market Potential

Analysts peg Navitas’ addressable market exploding 66-87% yearly to $1.4-2.5 billion by 2030, tapping a $2.6 billion 800V data center slice via GaN/SiC combos. “Navitas’s integrated power ICs offer scalable solutions for trillion-dollar power shifts in AI and EVs,” notes AInvest analysis on its Nvidia tie-up. Yet Q4/full-year 2025 results due post-market today could sway sentiment.

Valuation Risks

Wall Street’s mixed: average price target $6.40-$6.74 implies 20-25% downside, with holds dominating despite two buys. Forecasts show 2026 revenue dipping to $36-48 million before rebound, as growth lags until 2027 ramps. At $1.9 billion market cap and -220% margins, the stock prices are in perfection amid beta 3.17 volatility.

Outlook

Navitas holds explosive upside if AI delivers triple density, 30% loss cuts but patience is key. Wait for revenue inflection post-Q4; a miss could trigger pullbacks, while design wins spark rallies toward $13 highs. For risk-tolerant tech bulls, it’s a pivotal watch in semiconductors’ power race.