Key Takeaways
- Navitas Semiconductor jumped 8% today after onsemi said its AI data center revenue grew 175% from a year earlier.
- onsemi’s $600 million deal for Ferric puts a much bigger rival in the race Navitas is running.
- Monolithic Power Systems, Power Integrations and Sandisk also rose as chip stocks climbed.
- Navitas reports tonight, and full-year estimates need a fourth-quarter guide of about $15 million.
Navitas Semiconductor (NVTS) is up 8% today, hours before its own third-quarter report. The move came after onsemi (ON) said after Monday’s close that its AI data center revenue grew 175% from a year earlier.
Monolithic Power Systems (MPWR) rose 7% and Power Integrations (POWI) gained 5%, while onsemi added 1%. Sandisk (SNDK) rose 3% as memory stocks bounced back from Monday’s sell-off.
onsemi has a lot more firepower
onsemi also agreed to buy Ferric for $600 million in cash. Ferric’s chips deliver power right at the processor, which is the job Navitas bought Claros for in October.
onsemi expects no meaningful near-term financial impact from Ferric. Navitas doesn’t expect Claros to drive growth until around 2028 or 2029. But onsemi can afford the wait: it generated $489 million of free cash flow last quarter, while Navitas burned $32.2 million in its second quarter.
Monolithic’s enterprise data revenue rose 164.6% from a year earlier to $506.7 million in the third quarter. The company is also sampling GaN chips for 800-volt data center racks, the market Navitas is chasing. Ferric gives onsemi a way into the AI processor power behind those sales. Can Monolithic keep growing that fast with onsemi on its turf?
Power Integrations reports later this week and guided third-quarter revenue to $122 million to $130 million. Its results will show whether onsemi’s AI surge reaches smaller GaN suppliers.
TIKR tracks 7 analysts on Navitas Semiconductor. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Navitas Semiconductor, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Navitas Semiconductor’s Analyst Ratings
Navitas still has to put up its own numbers
Analysts expect Navitas’s revenue to grow from $45.9 million in 2025 to $47.7 million in 2026:
Getting there takes about $15 million in the fourth quarter, on top of the $13.5 million management guided for the third. onsemi’s quarter gives analysts no reason to change those estimates before tonight.
Navitas traded at 34x forward sales at Monday’s close, above its three-year average of 31x:
At today’s price, it’s even higher.
Navitas is rising on a rival’s quarter, and that rival has the cash to chase the same customers. I’d want Navitas’s fourth-quarter guide in hand before paying this multiple.
Of course, if tonight’s guide clears $15 million, the stock could have further to run.
So what is Navitas stock actually worth?
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Disclaimer:
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