Navitas Semiconductor Q2 Earnings Call Highlights

Navitas Semiconductor NASDAQ: NVTS reported second-quarter 2026 revenue of $10.5 million, up 22% sequentially from $8.6 million in the first quarter, as growth in higher-power markets offset the company’s continued exit from mobile and low-end consumer applications. President and CEO Chris Allexandre said the company’s “Navitas 2.0” transformation is substantially complete, with the business increasingly centered on gallium nitride, or GaN, and high-voltage silicon carbide, or SiC, products for artificial intelligence infrastructure, grid and energy systems, performance computing and industrial electrification. “High-power markets grew more than 50% year-over-year,” Allexandre said, adding that nearly all sales are expected to come from high-power applications by the end of 2026. He said revenue from mobile and low-end consumer markets is expected to become insignificant by year-end. Management said AI infrastructure, including data centers and the grid and energy systems needed to power them, is expected to account for more than one-third of total revenue by the end of the year. The company said both its GaN and SiC product lines contributed to sequential growth during the second quarter, with particular acceleration in SiC. Allexandre said Navitas is seeing demand before the broader transition to native 800-volt DC data-center architectures. Higher power requirements in AC/DC power supplies are increasing demand for higher-density solutions and accelerating the replacement of silicon with SiC, he said. The company outlined several anticipated stages in the evolution of AI data-center power systems: Higher-power AC/DC power supply units using SiC are already ramping and are expected to continue through 2027. Power sidecar architectures with 800-volt DC output are expected to add SiC and GaN content beginning in 2027. Native 800-volt systems, in which DC/DC conversion moves closer to GPU and XPU compute trays, are expected to ramp from mid- to late 2027 and accelerate into 2028. Solid-state transformers and broader grid-to-rack 800-volt DC systems represent a longer-term opportunity beginning in 2028 and beyond. During the question-and-answer session, Allexandre said the company does not expect market discussion surrounding potential changes to certain 800-volt data-center platforms to alter its outlook. He said adoption will occur through multiple customers, platforms and stages rather than through a single transition. Chief Financial Officer Tonya Stevens said non-GAAP gross margin expanded to 39.5%, up 50 basis points sequentially and 100 basis points from the prior-year quarter. The improvement reflected a more favorable mix of higher-value, high-power products and increased re...