Navitas Semiconductor has outperformed larger rivals Nvidia and Broadcom in 2026 by offering power efficiency solutions for AI data centers. The company's new board converts very high voltages to lower voltages in a single step, addressing the extreme power consumption demands of AI infrastructure. However, the stock is trading at a significant valuation premium, with analysts already raising price targets substantially.
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Navitas Semiconductor has gained significantly in 2026, outperforming Nvidia (up about 3%) and Broadcom (up about 5%) since the start of the year. In March, Navitas introduced a new DC-DC power delivery board that converts 800 volts to 6 volts in a single power stage. In May, Morgan Stanley raised its price target on Navitas to $12.50 from $4.20, and Baird raised its target to $20 from $9.
Why it matters
Navitas has attracted investor interest because its power efficiency solution addresses a critical pain point for AI data centers—the extraordinary power demands of accelerated computing platforms. As AI infrastructure requires substantial power capacity, Navitas's ability to improve power efficiency at the high voltages used by AI-specialized data centers has made it appealing to investors following AI infrastructure trends.
What to watch
Navitas is trading at 92 times sales, a steep premium to its five-year average P/S ratio of 11.8, indicating that market expectations are already priced into the stock.
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