Navitas Semiconductor (NVTS) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Leadership insights and strategic priorities

• New CEO identified a significant opportunity in high power markets, especially AI data centers and grid infrastructure, prompting a rapid pivot from mobile to high power focus.

• Four strategic pillars guide the company: market focus (AI data center, grid, performance computing, industrial electrification), technology innovation, operational efficiency, and financial discipline.

• Mobile revenue now represents less than 25% and is targeted to fall below 10% by 2026, with resources redirected to high power segments.

• The company is leveraging its GaN and SiC expertise, aiming for profitability through top-line growth, improved gross margin, and controlled OpEx.

Market and technology outlook

• AI data center and grid infrastructure are the primary growth drivers, making up two-thirds of the $3.5B 2030 SAM, with a projected 60% CAGR.

• Both GaN and SiC technologies are critical, with the SAM split evenly between them; GaN dominates 800V HVDC, while SiC is essential for AC-DC conversion and grid upgrades.

• The company is sampling new high-voltage GaN and SiC modules, including an 800V, 50V HVDC board developed with a hyperscaler.

• Grid modernization is accelerating, driven by AI workloads, with U.S. deregulation and hyperscaler involvement spurring investment in battery storage and SSTs.

Execution and operational changes

• Rapid exit from mobile was driven by customer demand for high power solutions and the need to focus engineering resources.

• Q1 growth is attributed to high power, with expectations for sequential quarterly growth through 2026 as high power ramps and mobile declines.

• Supply chain robustness is enhanced by transitioning GaN foundry partnerships from TSMC to GlobalFoundries, with U.S. production ramping up and customer sampling planned by year-end.

• Distribution has been consolidated around Avnet and WT to align with the new market focus.