Navitas Semiconductor is pushing deeper into the AI data center power race with a new gallium nitride-based 10 kW converter designed to move electricity from 800 volts to 50 volts. The company says the unit can reach up to 98.5% power efficiency, a level that matters as data centers strain the grid and chip buyers search for every possible watt saved.
The announcement lands at a moment when power demand is becoming a bigger part of the AI story than raw computing speed. A single GPU used for artificial intelligence can require about five times as much power as a processor in a typical home or work computer, and an average AI data center can consume enough electricity to power a decent-sized town. Pew Research, citing International Energy Agency data, says U.S. data center electricity use is set to double by 2030, while the nation’s average cost of electricity has risen more than 40% over the past six years and more than 15% in just the past three years.
For Navitas, listed on the Nasdaq under NVTS, that backdrop gives its power-management business a sharper edge even though the company remains much smaller than dominant chipmakers such as Nvidia or Broadcom. Navitas does not sell processors; it designs silicon carbide-based and gallium nitride-based chips and circuitry that manage, convert and deliver power to other electronic components. Its technology already shows up in electric vehicle chargers, mobile devices, solar power systems and AI data centers, putting the company squarely in markets that are expanding as power efficiency becomes more valuable.
The tension for investors is that the growth story is running ahead of the financial one. Navitas’ revenue last year was down 45% from 2024’s top line, and the bottom line remains in the red, even as the stock has been performing well, though erratically, since last April’s multi-year low. That makes the latest product push more of a bet on future demand than proof of a turnaround today.
Still, the company’s focus lines up with where the market is headed. Mordor Intelligence expects the global silicon carbide market to grow by nearly 11% per year through 2031, and the gallium nitride semiconductor business by nearly 17% annually over the same period. If AI keeps driving higher power loads and customers keep paying for efficiency, Navitas may find that the chips behind the chips become more important than the chips themselves.
