NVTS vs ADI: Which Semiconductor Stocks Deserve Your Investment Attention?

The semiconductor stocks landscape is being reshaped by artificial intelligence and data center infrastructure demands. Two companies—Navitas Semiconductor and Analog Devices—are competing to capture this massive opportunity, but their current market positions and near-term outlooks tell very different stories.

Market Background: The AI-Driven Semiconductor Opportunity

Both Navitas Semiconductor (NVTS) and Analog Devices (ADI) operate within the same secular growth tailwind. The proliferation of AI infrastructure and data center expansion is fundamentally reshaping semiconductor stocks across the industry. Power delivery, connectivity, and energy efficiency have become critical competitive battlegrounds. NVIDIA’s transition to 800-volt AI factory architecture exemplifies this shift, moving away from traditional AC/DC power distribution toward high-voltage DC systems that require entirely new semiconductor solutions.

For semiconductor stocks to thrive in this environment, they must address one key challenge: delivering the power density and efficiency that next-generation AI systems demand. This is where each company’s technological positioning matters significantly.

Navitas Semiconductor: Strategic Pivot with Near-Term Headwinds

Navitas Semiconductor is attempting an aggressive repositioning toward high-power markets, and its integration into NVIDIA’s ecosystem represents a critical validation moment. The company possesses both Gallium nitride (GaN) and Silicon carbide (SiC) technology platforms—a rare combination among semiconductor stocks in this space.

The technical opportunity is real. Navitas is sampling 100-volt mid-voltage GaN devices designed for the final power conversion stages within AI servers. Simultaneously, it’s advancing 2.3 kV and 3.3 kV SiC modules targeting grid and energy storage applications that support emerging data center architectures. For a smaller player in an industry dominated by giants, this technological dual-front approach is impressive.

However, the company’s strategic sacrifice is significant. To focus resources on these high-margin power opportunities, Navitas is deliberately exiting lower-margin mobile and consumer segments—particularly in China. This decision is weighing heavily on near-term performance.

In Q3 2025, revenues fell to $10.1 million, representing a collapse of more than 50% year-over-year. Management’s Q4 2025 guidance projects further deterioration to approximately $7 million in sequential revenue. The Zacks Consensus Estimate for full-year 2026 stands at $38.36 million, which would constitute a 15.6% annual decline—an unusual metric for a semiconductor stocks portfolio during a supposed AI boom.

This creates a timing paradox: while Navitas’s long-term technological positioning appears compelling, the company is asking investors to endure significant near-term pain.

Analog Devices: Riding the AI Data Center Wave with Momentum

Analog Devices presents a starkly different narrative. Rather than transitioning through turbulent repositioning, ADI is experiencing genuine accelerating demand across its core business.

The headline figure is striking: ADI’s data center segment crossed a $1 billion annual run-rate in Q4 fiscal 2025. That represents three consecutive quarters of 50%+ year-over-year growth—a pace most semiconductor stocks can only dream of achieving. More impressively, management attributes this momentum directly to continued strength in AI infrastructure deployment.

The market mechanics supporting this growth are durable. AI servers impose unprecedented demands on power delivery and high-speed data connectivity compared to traditional computing architectures. This translates to higher spending on ADI’s core portfolio of power management and signal processing solutions. As AI system proliferation accelerates, these requirements intensify rather than diminish.

ADI’s broader market performance reinforces this thesis. The company’s Communications segment—its fastest-growing end market—expanded 26% year-over-year in fiscal 2025, with most growth concentrated in data center applications. Management’s guidance for Q1 fiscal 2026 projects revenues of $3.1 billion (±$100 million), with confidence in sustained data center momentum through fiscal 2026 as hyperscalers continue raising capital expenditure targets.

The Zacks Consensus Estimate for fiscal 2026 revenue reaches $12.89 billion, implying 16.9% year-over-year growth. Unlike Navitas, ADI is experiencing the AI wave rather than preparing for it.

Financial Trajectory and Earnings Quality

The earnings divergence between these semiconductor stocks becomes even more pronounced when examining bottom-line projections.

Navitas Semiconductor’s Zacks Consensus Estimate for 2026 earnings: -$0.19 per share. This loss estimate has remained unchanged over the past month, suggesting little optimism regarding near-term profitability restoration.

Analog Devices’ fiscal 2026 earnings consensus estimate: $10.01 per share, which represents a 28.5% year-over-year increase. Notably, this estimate was revised upward by $0.09 per share over the past seven days, reflecting improving analyst sentiment.

For semiconductor stocks, earnings trajectory matters more than revenue alone. ADI demonstrates genuine earnings momentum while Navitas continues operating in loss territory.

Valuation and Market Sentiment

Recent price action and valuation metrics reveal investor sentiment divergence:

Over the past three months, Analog Devices shares have appreciated 23.1%, while Navitas Semiconductor has declined 27.1%. This performance gap partially reflects the earnings realities detailed above.

On valuation metrics, the distinction is equally stark. Analog Devices trades at a forward price-to-sales ratio of 11.28X, while Navitas commands a forward P/S multiple of 63.2X. Among semiconductor stocks, this 5.6X valuation premium for a company experiencing revenue decline and losses is difficult to justify—particularly when compared to a competitor experiencing profitable growth.

ADI’s valuation multiples offer meaningful downside protection for investors, while Navitas’s elevated valuation leaves limited margin for error.

Investment Assessment: Two Different Stories in Semiconductor Stocks

These two semiconductor stocks represent contrasting investment theses with very different risk-reward profiles.

Navitas Semiconductor presents a “show me” story. The technology is interesting, the NVIDIA partnership carries strategic weight, and the long-term market opportunity is genuine. However, investors must weather substantial near-term uncertainty—declining revenues, persistent losses, and delayed profitability timelines. This profile suits only those with exceptional conviction and tolerance for volatility.

Analog Devices offers a more immediate and defensible investment case. The company is demonstrating real revenue and earnings acceleration into genuine AI infrastructure demand. The valuation is reasonable relative to growth, and management has visibility into sustained momentum throughout fiscal 2026. For semiconductor stocks investors seeking exposure to the AI thesis without excessive speculation, ADI represents the more compelling risk-adjusted opportunity.

Current Zacks rankings reflect this distinction: Analog Devices holds a Zacks Rank #1 (Strong Buy) designation, while Navitas Semiconductor carries a Zacks Rank #3 (Hold) rating.

For most semiconductor stocks portfolios, ADI’s combination of growth momentum, earnings acceleration, reasonable valuation, and visibility into near-term demand makes it the superior choice right now. Navitas may eventually deliver on its long-term promise, but the path forward requires patience investors may not possess during an period of rapid market evolution.