A passing glance might rule out an investment in Navitas Semiconductor (NVTS 4.31%). The company loses more money than it currently collects in revenue, and the stock has floundered since the company's 2021 SPAC.
Risk-tolerant investors still might want to put Navitas on their watch list, though, and maybe even in their portfolio. That's because the next five years should look very different.
What's Navitas Semiconductor?
Simply put, Navitas Semiconductor is revolutionizing the silicon that's been found in most electronics and electrically powered devices for decades. Its well-patented silicon carbide (SiC) material allows for more power-efficient circuits, and can tolerate greater currents and more heat, making it suitable for everything from phone chargers to data center power supplies to utility grids. Simultaneously, Navitas has perfected the use of gallium nitride (GaN) in integrated circuits, which accomplishes the same but allows for much smaller circuitry.
NASDAQ: NVTS
Key Data Points
The problem? The world's not quite ready for the engineering and design changes necessary to deploy this technology. But it's getting there.
Changes ahead
Much of the future is going to be powered by 800-volt equipment. For electric vehicles this means a switch from the standard 400-volt battery architecture, while for data centers, it means a leap from 48-volt power supplies to the same 800-volt platforms. In both cases, though, the end result is a reduction in total power consumption, reducing one of data centers' (and artificial intelligence data centers' in particular) biggest ongoing operating costs.
And Navitas Semiconductor believes this transition for data centers will begin in earnest next year and accelerate all the way through 2030, en route to becoming an opportunity worth $3 billion per year.
Image source: Navitas Semiconductor's August-2025 Investor Presentation.
Other silicon-using industries should follow this lead.
Healthy third-party optimism
Navitas isn't alone in its near-term optimism, either. Industry research outfits Global Market Insights and Straits Research both predict strong demand for SiC and GaN semiconductors, with the former expecting annualized growth of 25% through 2032.
Interested investors, however, should also remember this stock still poses above-average risk, mostly stemming from its small size.
