After Navitas' 19% Spike on NVIDIA MGX Tie-Up, Which Peer GaN/SiC Names Are Next in Line?

On June 3, $Navitas Semiconductor (NVTS.US)$ officially announced its deep integration into NVIDIA’s MGX next-generation AI supercomputing ecosystem. At the event, the company showcased its proprietary 800V-to-6V direct-drive Power Distribution Board (PDB). By eliminating the traditional 48V intermediate bus architecture, this board has become the standard power solution for new megawatt-class AI racks. Multi-stage power conversion in traditional servers leads to high energy loss; Navitas' SiC (Silicon Carbide) and GaN (Gallium Nitride) technologies enable single-stage voltage conversion, reducing overall system power consumption by 7% to 9%. This makes it an essential component for $NVIDIA (NVDA.US)$ 's self-built AI factories. During the event, the CEO stated that the bottleneck for AI compute expansion has shifted from GPUs to power supply. The 800V high-voltage DC architecture will be the standardized roadmap for global supercomputers over the next three years, and Navitas is one of the few power IC manufacturers with mass-production capabilities for both GaN and SiC materials.

Historically, NVTS's business was dragged down by the consumer electronics sector, leading to continuous revenue declines. However, starting in Q1 2026, its revenue began to recover on a quarter-over-quarter basis. Previously, the market questioned the company's ongoing losses and slower-than-expected commercialization of GaN, prompting short sellers to maintain heavy short positions. Consequently, the days to cover (Short Ratio) consistently ranked among the highest in the entire US semiconductor sector. Following the COMPUTEX launch, short sellers were forced into concentrated, passive position covering.

According to consensus analyst estimates, Navitas Semiconductor's revenue for 2026 is projected at approximately $42 million, which may even see a slight decline compared to 2025. High-growth expectations are primarily placed on 2027–2028, but as the company remains unprofitable, its current Price-to-Sales (PS) ratio stands at a staggering 178x.

Beyond NVTS, $Texas Instruments (TXN.US)$, $INFINEON TECHNOLOG (IFNNY.US)$ , and $ON Semiconductor (ON.US)$ are simultaneously deploying 800V SiC/GaN power solutions. Unlike Navitas, which relies on external foundries, Infineon, ON Semi, and TXN operate their own wafer fabs with third-generation semiconductor production lines, freeing them from foundry capacity constraints. Notably, Infineon’s SiC business is already contributing to its reported financial revenues.

Furthermore, these industry giants possess significant economies of scale. Their deep roots in traditional application areas allow large-scale shipments to effectively amortize costs. Their in-house fabs avoid foundry premiums, and years of accumulated expertise in power devices translate to higher product reliability. Compared to Navitas, which is still operating at a loss and continuously burning cash, Texas Instruments can leverage the massive cash flows generated by its mature businesses to fund its emerging power semiconductor operations, resulting in significantly lower financial risk.

In addition to semiconductor materials, certain companies in the power sector also occupy critical nodes in the supply chain:

$Monolithic Power Systems (MPWR.US)$: Its core business is GPU power modules. Both NVIDIA GPU boards and server motherboards require a vast number of MPWR power management chips. As AI server power consumption continues to rise, the demand for high-efficiency power management grows concurrently. In recent years, its enterprise data center business has expanded rapidly, making it a major beneficiary of AI infrastructure buildouts.

$Power Integrations (POWI.US)$: Traditionally focused on industrial power supplies, the company has recently pivoted to heavily invest in Gallium Nitride (GaN) and high-voltage power conversion. POWI has publicly stated its participation in NVIDIA’s 800V DC ecosystem, and its GaN power chips are considered highly suitable for next-generation high-voltage power delivery systems.

In summary, the third-generation semiconductor materials and components sector offers broad investment opportunities, with some smaller-cap companies providing higher volatility and risk, while traditional power semiconductor giants offer a higher margin of safety.

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