Navitas and Vicor face off in critical AI power delivery race
Navitas Semiconductor and Vicor Corporation are competing to supply power electronics for AI data center infrastructure, specifically leveraging GaN and SiC chip technologies for high-voltage power delivery. While Navitas is pivoting its business strategy toward high-power AI racks, Vicor is experiencing growth through its industrial and high-performance computing power modules.
Key Takeaways
- Navitas is pivoting to the high-power business, with SiC content per AI rack expected to increase by approximately 2.5 times.
- Vicor reported a book-to-bill ratio exceeding 2.0, with its one-year backlog growing 70% sequentially in early 2026.
- Testing for Navitas' 20-kilowatt 800V-to-6V GaN platform has advanced from device-level to board-level testing for OEM production.
- Vicor currently maintains a more attractive valuation at a forward sales multiple of 14.66X, compared to Navitas' 52.42X.
- Navitas expects AI power supply units to jump from 5-10 kilowatts to up to 30 kilowatts for specific hyperscaler systems.
Why It Matters
The shift toward power-intensive AI workloads is forcing a fundamental re-architecture of data center electrical systems. For the streaming ecosystem, which relies on heavy GPU-driven inference for personalization and transcoding, these infrastructure gains directly impact operational costs and hardware density limits. As hyperscalers adopt higher-voltage 800V systems to mitigate efficiency losses, the reliance on advanced GaN and SiC semiconductors will decide which infrastructure providers can maintain uptime while containing thermal loads. Watch for Navitas' conversion of board-level testing into commercial revenue as a signal of broad OEM adoption for 800V architectures.
Additional Context
The transition to high-voltage power systems is becoming a necessity as AI rack densities climb from historical averages of 10-20 kilowatts to projections of 600 kilowatts or higher by 2030, per Analog Devices (March 2026). This surge has created a bottleneck in traditional 48V architectures, where high current requirements lead to excessive cabling and heat waste. Consequently, major CSPs including NVIDIA and Google have prioritized 800V high-voltage DC (HVDC) infrastructure for upcoming platforms like Vera Rubin and future TPUs, per Wccftech (June 2026). Vicor is reinforcing its market position through a strategic pivot toward high-margin intellectual property licensing alongside its power module hardware. The company is expected to generate nearly $300 million through 2026 from licensing agreements following successful legal enforcement of its Vertical Power Delivery (VPD) patents, per Seeking Alpha (July 2026). This hybrid revenue model, combined with an estimated 55% gross margin in Q1 2026, has allowed Vicor to outperform broader semiconductor sector returns despite capacity constraints at its primary fabrication facilities. Meanwhile, Navitas’ "Navitas 2.0" strategy intentionally trades established consumer revenue for higher-value AI data center and grid opportunities. While this shift targets a total addressable market of over $1.4 billion by 2030, it has introduced substantial quarterly volatility. Per TradingView (May 2026), the company's AI infrastructure division grew 50% sequentially, yet Navitas remains below the high-$30 million quarterly revenue threshold analysts believe is necessary for operational breakeven under its new cost structure.
Read full article at tradingview.com
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