Navitas Semiconductor Partners with GreatWall Power for AI Solutions

Navitas Semiconductor is supplying its NVTS GaNSense power ICs to Greatwall Power, a China-based provider of switching power supplies. These advanced ICs are integral to the new 2.5kW ultra-high power density DC-DC converter designed for AI data centers. The upgrade, featuring Navitas’ NV6169 GaN solution, offers 50% more power compared to earlier models, fulfilling the requirements of applications prioritizing high efficiency and power density. This partnership supports a push toward sustainable AI infrastructure and promotes the wider adoption of 400V-DC systems, particularly in energy-intensive industries.

Year-to-Date Stock Performance: A Sharp Decline

Despite the promising partnership, Navitas shares have dropped significantly, with a year-to-date decline of 53.8%. This is a stark contrast to the broader Zacks Computer & Technology sector’s decrease of 10.4% and the Zacks Electronics – Semiconductors industry’s decline of 20.3%. The major dip in NVTS shares correlates with a revenue shortfall in the fourth quarter of 2024, propelled by decreased demand in the EV, solar, and industrial markets. Furthermore, the company anticipates a first-quarter 2025 gross margin reduction to approximately 38%, plus or minus 50 basis points, indicating profitability challenges amid intensified market pressures.

Impact of NVTS’ Technology on the Market

The partnership with GreatWall signifies a pivotal transformation in power architecture. The collaboration introduces a 400V-DC system that enhances AI efficiency and supports sustainability efforts. By minimizing energy losses and enhancing power density, it contributes to reductions in consumption and carbon emissions, thus solidifying Navitas’ position within the AI infrastructure market, which holds significant long-term growth potential.

Navitas’ GaNSense technology applications extend beyond data centers, venturing into telecommunications and industrial sectors, which are projected to present considerable growth opportunities. As the demand for 5G networks and next-generation connectivity accelerates, the need for more efficient, reliable power systems intensifies. GaNSense’s capability to handle substantial power loads with minimal loss places NVTS in a vital role for future communications infrastructure and essential industrial applications.

Strong Momentum from Data Center Demand

The momentum around NVTS’ GaN and SiC power solutions continues to grow, particularly in AI data centers, where numerous customers are initiating production. The data center pipeline has surged to $165 million, more than doubling its value since 2023. In 2024, Navitas secured 40 customer wins for its GaN and SiC AC-DC power supplies, with power systems ranging between 2.7 kW and 8.5 kW. Additionally, the company is advancing into the field of 48V DC-DC converters using its new 80-120V GaN technology.

Recent customer design wins totaling $450 million spotlight accelerating demand within the data center and EV sectors, showcasing Navitas’ effective market execution. This activity strengthens forecasted growth rates by late 2025, positioning NVTS to potentially outperform the broader power semiconductor industry over the long term.

The company achieved notable revenue growth and increased design win momentum from leading Asian ODMs in the data center segment in 2024. Securing 40 project wins highlights its expanding reach with key industry players, including Alphabet’s GOOGL Google, Amazon AMZN, and Facebook META, as well as Dell and HP.

Through its ongoing engagements with major hyperscalers like Google and Amazon, Navitas is integrating its GaN and SiC power solutions into cutting-edge AI-driven infrastructures. The adoption of its advanced power architectures by Dell and HP further cements these vital long-term partnerships.

Current Investment Outlook for Navitas

Navitas holds a Zacks Rank #2 (Buy), reflecting a positive outlook regarding its market performance.

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This article originally published on Zacks Investment Research (zacks.com).

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