Shares of Navitas Semiconductor have surged nearly 200% over the past 12 months, with a rise of over 40% since January. The midcap tech company specializes in gallium nitride and silicon carbide power chips.
The stock's increase is largely attributed to optimism around electrical infrastructure demands outpacing supply. Navitas is one of the few firms globally that develops and sells both GaN and SiC power chips.
These semiconductors can boost energy savings by up to 40% and are used in electric vehicles, consumer electronics, and AI data centers. In May 2025, Navitas announced a partnership with Nvidia to develop architecture for higher-voltage data centers.
McKinsey estimates data centers will require nearly $7 trillion in capital outlays by 2030. Navitas is currently not profitable, and its latest earnings report shows declining revenue.
The company is undergoing a strategic pivot, deprioritizing lower-power businesses to focus on higher-power revenue and customers. This shift is expected to result in lower near-term revenue but greater gains in coming years.
Navitas reported $10 million in net revenue against $23 million in expenses for the third quarter of 2025. It had $150 million in cash and equivalents available at that time.
Competition includes larger companies like Texas Instruments, STMicroelectronics, and ON Semiconductor, which are expanding their GaN technology offerings. The Motley Fool Stock Advisor team identified 10 stocks they consider better investments than Navitas Semiconductor.