Navitas Semiconductor Maps Four-Stage Path to 800V Data Centers, Says NVIDIA's Kyber Cancellation Won't Dent 2027 Outlook
Q2 2026 earnings call, July 27, 2026: Revenue jumps 22% sequentially as AI infrastructure business accelerates past Street expectations
Navitas Semiconductor delivered a second quarter that beat guidance and, more importantly, offered investors the most granular roadmap yet for how the company expects to capture content as AI data centers migrate to 800-volt power architectures. Revenue rose 22% sequentially to $10.5 million, at the high end of the prior outlook, while the third-quarter guide of $13.5 million implies 28% sequential growth and a return to year-over-year growth for the first time in several quarters. CEO Chris Allexandre told analysts the company's transformation into a "high power" pure-play is now "1 quarter ahead" of the timeline management laid out six months ago, with mobile and low-end consumer revenue set to be "insignificant" by year-end.
Four inflection points define the 800V opportunity
The most substantive new disclosure was management's explicit four-stage framework for how 800V architecture will roll out across AI data centers, a roadmap Allexandre said is detailed in the earnings slide deck. The first inflection, already underway and ramping through 2027, is the replacement of silicon with silicon carbide in AC/DC power supply units as power density requirements increase, independent of any 800V transition. The second inflection, ramping in mid-2027, involves the introduction of 800-volt bus bars in power side-car racks, pushing AC/DC power shelves and battery backup units out of the IT rack and adding both SiC and GaN content in the process. Navitas said it is in "advanced system design and reliability testing with several key customers" for this stage.
The third inflection, which Allexandre called "native 800V," involves integrating DC/DC conversion directly into GPU and XPU trays using GaN for its switching frequency advantages, an inflection he expects to ramp from mid-to-late 2027 and accelerate into 2028. The fourth and final inflection, arriving in 2028 and beyond, involves solid-state transformers converting utility-grade AC directly to 800V DC on-site, which Allexandre described as "the full 800V DC evolution with ultra-high voltage SiC and GaN across grid modernization, solid state transformers and end-to-end power delivery from grid to core."
Addressing the Kyber cancellation directly
Needham's Quinn Bolton pressed management on market chatter that NVIDIA's Kyber rack, an 800V architecture, may have been canceled and replaced by an unannounced alternative, and whether that changes Navitas's 2027 revenue trajectory. Allexandre declined to comment on NVIDIA specifically but pushed back on the premise that 800V adoption is a binary event. "I think there is a misconception in the 800V being a digital switch," he said, arguing that inflection points two and three are already driving incremental GaN and SiC content regardless of any single customer's rack design. He was direct on the bottom line: asked if the outlook changes, "the answer is no," attributing that resilience to Navitas's dual GaN-and-SiC exposure, which he called "a strategic advantage... even more so today."
CFO Tonya Stevens reinforced the point, noting that AI infrastructure revenue grew more than 50% quarter-over-quarter in both Q1 and Q2 and is expected to keep accelerating, while Allexandre added that the current growth is happening "pre-800V" entirely, driven instead by dozens of individual programs across multiple hyperscalers, merchant power customers, and OEMs rather than a single large socket win.
Expanding total addressable market with new silicon carbide JFETs
Navitas disclosed a new 1.2 kV silicon carbide JFET product line targeted at safety-critical applications such as eFuses, ORing, and solid-state circuit breakers, set for release in early 2027. Management said the product line adds nearly $1 billion in incremental total addressable market by 2030, with Allexandre citing one solid-state transformer customer where the addition of JFET capability increased Navitas's addressable content in that single program by 40%. The company also flagged that a new 6.5 kV SiC technology is due for unveiling shortly, alongside ongoing development of 10 kV SiC devices with what Allexandre called "a prominent lead customer."
Magnachip licensing deal signals a shift toward supply chain resilience
Navitas also disclosed a licensing partnership with Magnachip covering its GeneSiC Gen 4 and Gen 5 trench-assisted planar technology across the 1.2 kV to 3.3 kV range, with Magnachip qualifying and internalizing the technology in its South Korea fab. Allexandre framed the deal as serving two purposes: expanding Navitas's addressable market into segments the company does not currently serve directly, and establishing a second foundry source for SiC wafers to support scaling. "We are not creating a competitor," he said. "We are creating an extension of Navitas."
Litigation with Wolfspeed and Renesas draws sharp commentary
Asked about ongoing patent litigation with Wolfspeed, Allexandre offered unusually pointed commentary, framing the lawsuit as the latest step in what he called "a campaign of harassment and intimidation through litigation." He noted that Wolfspeed previously sued Navitas after the company stopped purchasing wafers from it, then sued two Navitas employees who had previously worked at Wolfspeed, including one Wolfspeed itself had laid off, and unsuccessfully sought a restraining order over recruiting calls before ultimately filing a patent infringement suit covering both GaN and SiC. He also disclosed that Renesas filed a separate suit the week before earnings, noting that Renesas holds an economic interest of up to 39% in Wolfspeed based on public filings. "Is all this a coincidence, the week before the earnings? I'll let you decide," he said, adding that he departed Renesas more than a year ago. "You don't start litigation like this if you are winning market share." He declined further comment given the pending nature of the cases.
Balance sheet strengthened via opportunistic capital raise
Cash and equivalents rose to $567 million at quarter-end from $221 million in the first quarter, reflecting a $373 million capital raise completed at an average price of $21.89 per share. Management said the proceeds will fund the Foundry Plus initiative with GlobalFoundries, capacity expansion and supply reservation agreements with foundry partners, and potential inorganic opportunities, while reiterating the company carries no debt. The GlobalFoundries transition to 8-inch GaN production remains on track for customer sampling by year-end and qualified product in early 2027, a move management framed as supporting U.S.-based manufacturing for national security applications.
Margins and spending both inching higher
Non-GAAP gross margin expanded 50 basis points sequentially to 39.5%, with guidance of 39.7% for the third quarter, driven by the ongoing mix shift away from mobile and toward higher-value power products. Operating expenses are set to rise by $1.0 million to $1.5 million in the third quarter, roughly a 10% increase that management stressed remains well below the 28% sequential revenue growth guided for the same period. Stevens said the incremental spending will fund new R&D programs including the JFET line and ultra-high-voltage SiC development, along with additional application engineering support ahead of ramping shipments. Both executives were careful to frame the increased investment as a deliberate, accelerated decision rather than a departure from the company's underlying path toward profitability.