TLDR
- Navitas posts 22% Q2 revenue growth as high-power sales accelerate
- AI infrastructure expected to contribute over one-third of annual revenue
- Cash balance jumps to $557.4 million, strengthening expansion plans
- Q3 guidance signals 28% sequential revenue growth and higher margins
- Navitas 2.0 shift positions business around high-power semiconductor markets
Navitas Semiconductor Corporation (NVTS) reported stronger second-quarter results as revenue increased sequentially and high-power demand accelerated. The company also projected another quarter of double-digit growth while advancing its transition toward AI infrastructure markets. Meanwhile, NVTS shares closed 4.49% higher at $11.41 before falling 4.65% to $10.88 in overnight trading.
Navitas Semiconductor Corp, NVTS
High power business drives sequential revenue growth
Navitas reported second-quarter revenue of $10.5 million, representing a 22% increase from $8.6 million during the first quarter. However, revenue remained below the $14.5 million recorded during the same period last year. Even so, high-power markets expanded by more than 50% year over year and supported the company’s strategic shift.
The company continued reducing exposure to mobile and lower-end consumer products throughout the quarter. Consequently, nearly all future revenue will come from high-power applications under the Navitas 2.0 business strategy. Management expects that transition to finish before year-end.
AI infrastructure continued gaining importance across the business during the quarter. Revenue from AI data centers, grid infrastructure, and energy applications should exceed one-third of total sales before year-end. That expansion also supports additional business momentum entering 2027.
Margins improve while cash position strengthens
Navitas expanded profitability despite ongoing restructuring and business changes. Non-GAAP gross margin increased to 39.5% from 39.0% during the previous quarter and improved from 38.5% one year earlier. Meanwhile, GAAP gross margin reached 0.4% after remaining negative during recent quarters.
Operating performance also improved on an adjusted basis. Non-GAAP operating loss narrowed to $11.4 million from $11.7 million during the previous quarter. Likewise, adjusted net loss improved to $9.3 million compared with $9.8 million during both the first quarter and the prior-year period.
The company significantly strengthened its balance sheet during the quarter. Cash and cash equivalents increased to $557.4 million from $236.9 million at the end of 2025. That increase provides additional resources for product development, manufacturing expansion, and market penetration.
Product expansion supports future AI infrastructure demand
Navitas continued expanding its high-power product portfolio through several technology launches. The company introduced its Isolated TO package for 1.2 kV to 3.3 kV silicon carbide MOSFETs. The design delivers module-level thermal performance within a compact discrete package.
The company also expanded its silicon carbide lineup with a new 1.2 kV JFET family. Navitas plans commercial availability by early 2027 while targeting AI data centers, solid-state transformers, and grid infrastructure. Those markets represent an estimated additional serviceable opportunity worth $1 billion.
Navitas also advanced customer programs supporting next-generation AI infrastructure. The company expanded collaboration within the NVIDIA MGX ecosystem by demonstrating an 800 V-to-6 V DC-DC power delivery board during COMPUTEX 2026. At the same time, it continued shipping production samples across gallium nitride and silicon carbide technologies for multiple customer platforms.
Management forecast continued momentum during the third quarter. Revenue guidance reached $13.5 million, plus or minus $0.5 million, representing approximately 28% sequential growth at the midpoint. The company also projected non-GAAP gross margin of approximately 39.7% while expecting mid-single-digit full-year revenue growth as the Navitas 2.0 transformation nears completion.
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