Navitas Semiconductor (NVTS) Q2 FY26 earnings call: guidance and Q&A

Navitas has substantially completed its strategic transformation to "Navitas 2.0," pivoting to high-power markets, particularly AI infrastructure. This shift has resulted in mobile and low-end consumer revenue becoming insignificant, with high-power markets now representing the majority of overall revenue. The company is ahead of schedule on this transition, with AI infrastructure (AI data centers and grid energy) becoming the primary growth driver, expected to exceed one-third of total sales by year-end.

The rapid adoption of AI is driving immense demand for high-power solutions, benefiting Navitas's GaN and high-voltage SiC technologies. Management outlined four inflection points for AI data center growth: SiC adoption in AC/DC PSUs (H2 FY26 ramp), 800V bus bar introduction with power sidecars (mid-2027), GaN integration into GPU/xPU trays for DC/DC conversion (mid to late 2027), and solid-state transformers for full 800V DC evolution (2028 and beyond). The company is growing ahead of the 800V transition, with multiple programs across various hyperscalers and power levels.

Navitas continues to invest diligently in GaN and high-voltage SiC innovation. Key developments include advancing GaN preface platform solutions for 800V data centers, the industry's lowest RDS(on) 650V GaN FET, and new 100V GaN for secondary side applications. In SiC, the GeneSiC technology offers best-in-class reliability. New products include an isolated TO-247 family (1.2kV to 3.3kV) and a 1.2kV JFET product line, which is expected to add $1.3 billion of incremental TAM by 2030. Ultra-high voltage SiC (6.5kV and 10kV) is also in development.

A strategic partnership with Magnachip was announced to license GeneSiC Gen 4 and Gen 5 technology, expanding market reach and strengthening supply chain resilience by establishing another foundry source in South Korea. Navitas is also on track for U.S.-based GaN manufacturing with GlobalFoundries by early 2027 and has secured buffer capacity at TSMC. The company is consolidating OSAT partners and leveraging AI tools internally to accelerate execution and improve efficiency.

Despite strategic investments, Navitas maintained operating expenses essentially flat over the past nine months. The company recently raised $373 million in additional capital, bringing cash and cash equivalents to $567 million at quarter-end, with no debt. This capital provides increased flexibility to fund strategic investments in Foundry Plus initiatives, capacity expansion, supply reservation agreements, and potential strategic inorganic opportunities, while maintaining focus on top-line growth and gradual gross margin expansion towards profitability.

Management addressed ongoing litigation with Wolfspeed and Renesas, characterizing it as a 'campaign of harassment and intimidation' and a 'desperate move' given Navitas's market momentum and technological advancements. They highlighted the suspicious timing of^📎 the lawsuits (week before earnings, Renesas owning a stake in Wolfspeed) and asserted Navitas's commitment to IP and technology, while letting observers draw their own conclusions on the motives behind the lawsuits.