Navitas's AI Infrastructure Transformation Accelerates Ahead of the 800V Wave
Q2'26 shows record momentum in high-power GaN/SiC, with AI infrastructure expected to be 1/3 of revenue by year-end, but litigation and a dilutive raise add risk.
NVTS · Earnings Call · 2026-07-27
The 800V Inflection: More Than a Digital Switch
Navitas Semiconductor's second-quarter 2026 earnings call was a declaration that its transformation to a high-power AI infrastructure company is not only on track but ahead of schedule. CEO Chris Allexandre confidently stated, “we are well ahead by over 1/4 of expected action for nearly all sales to be coming from high-power market by year-end,” and projected that AI infrastructure would represent more than a third of total sales by Q4. The company's own inflection point narrative—four distinct steps from AC/DC PSUs to solid-state transformers—highlights how GaN and high-voltage SiC content expands as 800V DC architectures ramp. Crucially, Chris argued that the market's fixation on the 'native 800V' socket misses the point: “I think there is a misconception in the 800V being a digital switch... It's not a one thing, okay, and one customer." Instead, the company is already shipping SiC in AC/DC PSUs, and multiple hyperscalers and merchant power customers are driving revenue growth ahead of the full 800V transition. This is a stark departure from the prior quarter's narrative, which focused on the 800V ramp being a 2027 event. In the May 2026 call, Allexandre had referenced content-per-megawatt figures: “we gave guidance in terms of content per megawatt because that's how the best way to kind of define the content we talked about for GaN in the range of $10,000 to $15,000 per megawatt.” Now, the company is saying the inflection is already underway, with Q2 revenue up 22% sequentially to $10.5M and Q3 guide implying 28% growth—a return to year-over-year growth. The AI infrastructure segment grew over 50% quarter-over-quarter, and the company expects this to accelerate as the sidecar rack and native 800V topologies layer in during 2027.Financial Discipline Amid a Strategic Pivot
Despite the revenue downturn from the mobile exit (total revenue fell 39% year-over-year), the company is executing with financial discipline. CFO Tonya Stevens highlighted in prepared remarks: “We continue to expect gradual improvement in gross margin throughout the year as we drive top line growth in high-power markets.” Indeed, gross margin expanded 50bps sequentially to 39.5%, and Q3 guidance calls for 39.7% at the midpoint. The company raised $373M in the quarter at $21.89 per share, ending with $567M in cash and no debt. This provides ample runway to fund the Foundry Plus program and potential licensing deals before profitability. Q3 OpEx is targeted at $15.5-$17.5M, up about 10%, but still far below the expected revenue growth rate. Management reiterated that break-even revenue is in the high 30s, and with the growth trajectory, the path to profitability is tangible. The prior quarter's call had already set the stage: “recognize the 800-volt data center is heavily a 2027 play,” but the acceleration in AI infrastructure and sidecar ramps has pulled that timeline forward. The company's balance sheet strength allows it to invest aggressively in new product lines like the 1.2kV JFET and 6.5kV SiC, expanding its serviceable addressable market by $1B by 2030.Litigation as a Signal
Perhaps the most aggressively discussed topic was the dual lawsuits from Wolfspeed and Renesas. Allexandre framed these as a campaign: “You don't start litigation like this, if you are winning market share, your technology is superior.” He called the suits “desperate” and pointed to timing—both filed the week before earnings—as evidence of intimidation. The company recently announced a licensing deal with Magnachip, which Allexandre described as both a validation of technology and a strategic expansion of its foundry sources. While litigation risks are real, the company's momentum in design wins and customer engagements suggests it is not a zero-sum battle.You don't start litigation like this, if you are winning market share, your technology is superior.