It cut its revenue in halfto chase the AI power wall
Navitas walked away from its phone-charger business, watched annual revenue fall from $83.3 million to $45.9 million, and booked a $228 million quarterly loss, while raising more than half a billion dollars of cash. We read the filings to see whether this is a collapse or a deliberate rebuild around AI data-center power.
- PublishedOct 18, 2026
- Research as ofSep 28, 2026
- Sources8
The numbers
What the filings say
The breakdown
Can the power wall pay for the valuation?
Navitas has the cash and the technology for AI data-center power. The question is whether it can turn design wins with NVIDIA's 800-volt architecture and server power suppliers into real revenue fast enough to justify a price of many times its sales.
The deliberate teardown.
Under the Navitas 2.0 plan the company exited high-volume, low-margin mobile chargers in China. Revenue fell from $83.3 million in 2024 to $45.9 million in 2025, and Q1 2026 sales bottomed at $8.6 million. Chris Allexandre became CEO on September 1, 2025.
Why GaN and silicon carbide.
Wide-bandgap materials switch faster and handle higher voltages and heat than silicon. Navitas integrates the GaN power transistor with its drive and protection circuitry on one chip (GaNFast, GaNSense, GaNSafe) and added silicon carbide by buying GeneSiC in 2022.
Grid to processor.
AI racks are moving to 800-volt DC power, and in May 2025 NVIDIA named Navitas among its partners for that architecture. In August 2026 Navitas agreed to buy Claros, whose vertical power delivery puts voltage regulation right under the processor. The company says the deal more than doubles its 2030 serviceable market to over $8 billion; that is a company estimate.
The two numbers that confused investors.
Q2 2026 GAAP gross margin was 0.4% while non-GAAP was 39.5%, mainly because of acquisition amortization. The $228.2 million GAAP net loss included a $203.1 million non-cash earnout remeasurement; non-GAAP net loss was $9.3 million, or 4 cents a share.
Sources 1Cash in, shares out.
Cash reached $557.4 million at June 30, 2026, largely from selling shares at the market while the stock rallied. That funds the Claros deal and wafer supply, but it diluted existing holders.
Supply and lawsuits.
TSMC, Navitas' sole GaN wafer supplier, plans to stop GaN production in July 2027, so Navitas bought buffer inventory and is moving to Powerchip (PSMC) and GlobalFoundries. In September 2026 it bought about 1.46 million Magnachip shares for $5 million in a silicon carbide partnership. Wolfspeed sued Navitas for patent infringement in Delaware in July 2026; Navitas disputes the claims.
Two endings
Where this could go
The power backbone of AI.
- 800-volt data-center power and Claros' vertical delivery open a market the company sizes at over $8 billion by 2030.
- $557 million of cash and no need to borrow funds the plan.
- High-power sales replace phone chargers and margins expand as the mix shifts.
A valuation ahead of the revenue.
- On trailing sales of tens of millions, the price-to-sales multiple is extreme.
- Share sales and acquisition stock keep diluting holders.
- Wolfspeed seeks damages and an injunction, Renesas is suing too, and large chipmakers with their own fabs compete on price.
Scenarios, not predictions. Not financial advice.
Check our work
Every source
- 01Form 8-K, Exhibit 99.1: Q2 2026 resultsSEC filingRevenue, GAAP and non-GAAP margins and net loss, the earnout charge, cash, and Q3 guidance.sec.gov · Jul 27, 2026
- 02Form 10-Q: Q2 2026SEC filingFull financial statements and the at-the-market equity program.sec.gov · Jul 27, 2026
- 03SEC filing
- 04Form 8-K: agreement to acquire ClarosSEC filingEstimated $232.8M purchase price and its cash and stock parts.sec.gov · Aug 25, 2026
- 05Exhibit 99.1: Claros acquisition press releaseSEC filingThe company's claim that its 2030 serviceable market doubles to over $8B.sec.gov · Aug 25, 2026
- 06Form 8-K: Magnachip stock purchaseSEC filing1,461,988 Magnachip shares at $3.42, $5M in total.sec.gov · Sep 21, 2026
- 07Form 8-K, Exhibit 99.1: statement on the Wolfspeed complaintSEC filingNavitas' response to Wolfspeed's patent suit in the District of Delaware.sec.gov · Jul 8, 2026
- 08Form 8-K: Chris Allexandre appointed CEOSEC filingAppointment as President and CEO, effective September 1, 2025.sec.gov · Aug 25, 2025
How we researched this
Figures are stated as the filings support them. Q1 2026 revenue ($8.6 million) is the first-half figure minus Q2. The $8 billion market size is the company's own estimate.
Not from filings: share prices and the stock's peak and fall, the market value and enterprise value, the 73–87x trailing and 55–62x forward sales multiples, short interest, institutional ownership, analyst price targets and the 2026–2030 consensus revenue path. Those came from our research at the time and are dated market data and analyst opinions. We also left off figures from the film we couldn't tie to a filing: the China and North America revenue shares, the $19.5 million TSMC buffer inventory, the diluted share counts, the founder's share sale, and the technical specifications of individual products. The May 2025 NVIDIA 800-volt collaboration was a public announcement by both companies; it is not in the filings cited here.
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