Navitas NVTS Eyes AI Data Centers, Semiconductor on Momentum

Market Snapshot

As AI-driven data centers expand across hyperscale networks, investors are recalibrating expectations for a handful of chipmakers. The broader market has cooled after a year of outsized AI hype, but demand for advanced power management, sensors, and access-pattern chips remains brisk. With Nvidia leading the architecture wave, providers of supporting semiconductors are stepping into a clearer growth path, even as near-term earnings volatility lingers.

In this environment, navitas (nvts), semiconductor (on) are among the names getting renewed attention from traders and buy-side researchers. The narrative: AI data-center upgrades will require more efficient, higher-density power and smarter sensing — a set of capabilities Navitas and ON Semiconductor are positioned to provide.

Navitas Focus: Powering AI-Ready Data Centers

Navitas Semiconductor specializes in GaN (gallium nitride) power devices that are designed to boost energy efficiency and reduce heat in high-performance computing and data-center power systems. The company has faced revenue softness in a slower AI data-center capex cycle, but executives have signaled a strategic pivot toward the AI stack’s data-center layer where demand is expected to rebound.

A market analyst recently noted that navitas (nvts) could see a meaningful turnaround as Nvidia-based data-center architectures become more common and vendors lean into power-management efficiencies. The thesis: AI servers will require compact, power-dense solutions to manage the expanded workloads, and Navitas is well positioned to capture incremental share as hyperscalers refresh fleets.

• 2025 revenue: Approximately $180 million, with a mix shift toward data-center products projected to lift margins in the next cycle.
• Near-term catalysts: New data-center architecture updates and ramp of next-gen GaN power devices could unlock higher ASPs and better volume, according to industry chatter.
• Valuation angles: If demand follows the AI capex cycle, Navitas could move from a recovery story to a growth story in 2027-2028.

Investors should watch how Navitas manages supply chain constraints and whether partnerships with large hyperscalers accelerate the transition to higher-margin offerings. While the stock has traded in a wide range during 2025 and early 2026, a clearer AI-data-center demand signal could re-rate the company higher.

ON Semiconductor Focus: Stabilizing Earnings, Accelerating Automotive and IoT

ON Semiconductor is a broader supplier of sensors, power-management ICs, and device components that feed into automotive, industrial, and data-center ecosystems. The company has been navigating a mixed back half of the decade, balancing cyclical autos demand with the secular growth from electrification and AI-enabled sensing.

Analysts see a bifurcated path: a revived automotive cycle and a stronger data-center and industrial footprint could lift earnings. A senior research note highlighted that ON Semiconductor (semiconductor (on)) should benefit from improving auto production, better gross margins, and a strategic shift toward higher-value analog and sensor products. A typical forecast path envisions a multi-quarter rebound in earnings per share as auto demand cycles re-accelerate.

• Revenue trajectory: 2025 revenue near the high single digits of growth; 2026-2027 expected to show more consistent expansion driven by automotive and industrial projects.
• EPS outlook: Analysts have penciled in a rebound, with 2026-2028 EPS rising from around the mid-$2s toward the $4-$5 range as product mix shifts and volumes improve.
• Market position: ON Semiconductor remains a key supplier for sensors and power-management in EVs, data centers, and industrial automation, which supports a disciplined margin profile during a volatile cycle.

In the current market, the question for investors is whether ON Semiconductor can maintain its momentum as auto production normalizes and as AI-adjacent demand for sensing and power management persists. The growing importance of efficient energy use in AI servers supports a constructive case for the shares, particularly if the company sustains cost discipline and expands its high-margin mix.

Other Stocks On the Radar

Beyond Navitas and ON, several semiconductor names offer exposure to the AI data-center cycle and the broader digitization trend. Here are three that investors often watch for similar catalysts:

• Broadcom (AVGO): A diversified supplier of networking chips, storage controllers, and enterprise-grade silicon. Analysts expect Broadcom to benefit from AI-driven data-center upgrades and software-enabled networks, with steady dividend support for income-focused investors.
• Micron Technology (MU): A memory leader whose AI workloads drive higher DRAM and NAND demand. The stock often moves with memory pricing trends and AI server refresh cycles, offering a cyclical but information-rich exposure to the AI cycle.
• Applied Materials (AMAT): A key enabler of semiconductor fabrication through equipment and process technology. AI and advanced node spending should support AMAT’s order cadence as fabs ramp to meet data-center and AI silicon production.

These names provide a broader frame for palettes that include navitas (nvts), semiconductor (on). The convergence of AI workloads, data-center efficiency needs, and EV-related power management is renewing interest in companies that sit at the intersection of performance, energy, and sensing.

What This Means for Investors

As of March 25, 2026, market watchers are assessing how AI-induced demand reshapes traditional semiconductor cycles. The AI data-center upgrade cycle remains a powerful driver for power management, sensors, and high-efficiency computing components. The path forward for navitas (nvts) and semiconductor (on) hinges on execution in product ramps, margin resilience, and the pace of AI infrastructure refreshes across hyperscalers.

Key takeaways for investors:

• AI demand drives margins: The AI data-center upgrade cycle can lift pricing power for specialized devices and reduce the need to concede margin in commoditized segments.
• Diversification helps: ON Semiconductor’s mix of automotive, industrial, and data-center applications provides resilience if any single segment cools.
• Valuation matters: With a potential rebound in earnings for both navitas (nvts) and semiconductor (on), the sector could re-rate if growth visibility improves and capital returns remain compelling.

Investors should balance growth potential with risk: cyclical demand swings, supply-chain volatility, and competition from larger AI ecosystem players could pressure near-term returns. A measured approach, combining fundamental research with price targets derived from earnings power and cash-flow generation, remains prudent in a market still calibrating to AI-driven growth expectations.

Bottom Line

The AI data-center wave continues to shape how investors think about navitas (nvts) and semiconductor (on). While Navitas faces a growth path dependent on new architecture adoption and margin expansion, ON Semiconductor stands to benefit from a more diversified mix and an improving auto cycle. As investors weigh the trio of stocks to watch alongside Broadcom, Micron, and Applied Materials, the overarching message is consistent: AI workloads are increasingly a capital allocation driver for semiconductor companies, and the winners will be the ones that combine product leadership with disciplined financial execution.

Investor Notes

• The AI data-center cycle remains the central theme; players with power management, sensing, and high-efficiency solutions are best positioned to weather near-term volatility.
• Valuation discipline remains important. Stocks tied to AI infrastructure can see meaningful moves when earnings visibility sharpens or new customer wins are announced.
• Keep an eye on earnings cadence and capital allocation plans, especially for navitas (nvts) and semiconductor (on), as the market prices in the next wave of AI-driven demand.