AMD Revenue Climbs Steadily; Navitas Falls Despite AI Sector Growth

Advanced Micro Devices and Navitas Semiconductor present contrasting stories in the AI-driven semiconductor market, with their revenue trajectories diverging sharply over the past two years. AMD, which develops and sells microprocessors, graphics processing units, and custom system-on-chip solutions to hardware manufacturers and public cloud providers, has grown its quarterly revenue consistently from $5.8 billion（約9300億円） in Q2 2024 (ended June 2024) through $10.3 billion（約1.6兆円） in Q1 2026 (ended March 28, 2026). For the quarter ended March 28, 2026, the company posted a 14% net income margin, underlining profitability alongside its scaling. The company has invested heavily to support this growth, committing over $10 billion（約1.6兆円） to expand advanced packaging capabilities in Taiwan.

Navitas Semiconductor, which designs and markets gallium nitride and silicon carbide power integrated circuits for automotive, mobile, and consumer electronics, has experienced a sustained revenue decline. Revenue fell from $20.5 million（約33億円） in Q2 2024 (ended June 2024) to just $8.6 million（約14億円） in Q1 2026 (ended March 31, 2026), a nearly 58% contraction over the period. More strikingly, the company recorded a -393% net income margin for the quarter ended March 31, 2026, indicating substantial operational losses. However, according to the Foolish Take analysis, much of this decline is intentional: Navitas decided to exit its mobile and consumer businesses in China last year to concentrate on the AI sector, and that China market had produced 60% of the company's 2024 revenue.

Navitas has also faced external pressures. The company recently responded to a patent infringement complaint filed by Wolfspeed, and it announced a $500 million（約800億円） at-the-market equity program, which threatens to dilute existing shareholder value. Despite these headwinds, management has signaled that sales would begin to recover this year. Q1 2026 revenue of $8.6 million（約14億円） did increase compared to Q4 2025's $7.3 million（約12億円）, suggesting the anticipated turnaround may be beginning, though the stock price has fallen recently due to the Wolfspeed lawsuit and the equity dilution risk.

AMD's success reflects robust demand for its chips to power AI systems. As customers increasingly focus on AI inference capabilities, demand for CPUs is expected to rise further, positioning AMD's processor strength to capture additional growth. By contrast, Navitas' restructuring—while strategically sound in redirecting the company toward AI's higher-value power management segment—has created a near-term revenue trough that, combined with litigation and dilutive financing, has tested investor patience.

The revenue comparison between AMD and Navitas reveals two divergent trajectories within the artificial intelligence sector. AMD's steady scaling—from $5.8 billion（約9300億円） in Q2 2024 to $10.3 billion（約1.6兆円） in Q1 2026—reflects consistent demand for its processors and GPUs from cloud providers and hardware manufacturers investing in AI infrastructure. The company has backed this growth with a commitment of over $10 billion（約1.6兆円） to advance its packaging capabilities in Taiwan, signaling confidence in sustained demand.

Navitas' sharper decline, from $20.5 million（約33億円） to $8.6 million（約14億円） over the same span, appears driven by deliberate business restructuring rather than external market failure. By exiting its mobile and consumer operations in China—which accounted for 60% of 2024 revenue—the company narrowed its addressable market to focus on AI power management, a higher-value segment. However, the transition has compressed near-term revenue and coincided with external headwinds: a patent infringement complaint from Wolfspeed and the announcement of a $500 million（約800億円） at-the-market equity offering that risks diluting existing shareholders. The modest sequential improvement in Q1 2026 compared to Q4 2025 suggests management's recovery forecast may be materializing, though investor confidence remains fragile.