Key Takeaways:
Navitas Semiconductor reported Q2 revenue of $10.5 million, topping estimates, and guided Q3 revenue 28% higher as its AI infrastructure pivot gains traction.
"The results reflect accelerated demand driven by power bottlenecks in AI infrastructure," CEO Chris Allexandre said. "Our high-power revenue grew more than 50% year over year."
Adjusted gross margin reached 39.5%, expanding 100 basis points year over year and beating the 38.7% consensus. Adjusted EPS matched expectations at a loss of $0.04 per share. The GAAP net loss of $228.2 million included a $203.1 million noncash earnout-liability charge.
Shares fell about 1% after hours following the report. The Q3 guide of $13.5 million at the midpoint implies a return to year-over-year growth, with management forecasting double-digit sequential gains through the second half.
Navitas ended the quarter with $557.4 million in cash, more than double the $236.9 million at the end of 2025, giving it substantial funding to expand capacity while its core business remains unprofitable.
The company disclosed it is shipping production samples of its gallium nitride and silicon carbide solutions for next-generation AI data centers targeting 800-volt architectures. Selected hyperscaler and XPU platforms are expected to begin ramping in 2027. Navitas also deepened its collaboration with the NVIDIA MGX ecosystem, recently demonstrating an 800-volt-to-6-volt power delivery board.
High-power revenue grew more than 50% year over year during Q2, helping total revenue climb 22% sequentially despite remaining 27% below last year's level. The company expects mobile and low-end consumer revenue to become insignificant by the end of 2026, completing its transformation into a high-power semiconductor company.
A new 1.2-kilovolt JFET product line scheduled for release by early 2027 could address an incremental $1 billion market across AI data centers, solid-state transformers, and energy-grid infrastructure, according to management.
The guidance raise shows management expects AI infrastructure demand to accelerate. Investors will watch the Q3 earnings call for updates on hyperscaler platform ramp timing and GlobalFoundries' US GaN production timeline, guided for late 2026.
This article is for informational purposes only and does not constitute investment advice.
