Navitas Semiconductor Corporation (NASDAQ:NVTS) just received another important validation for its silicon carbide technology. The US Army has selected the company for a program to develop next-generation 10 kV SiC power semiconductors.
Navitas’ existing GeneSiC portfolio reaches 6.5 kV, so the program puts the company at the forefront of a higher-voltage technology class.
The ALATTIS program will develop and validate a domestic manufacturing process for ultra-high-voltage devices. That includes 10 kV insulated-gate bipolar transistors and PiN diodes. These could support mission-critical defense and infrastructure applications.
Army Validation Could Expand Navitas’ High-Power Opportunity
The fact that Navitas Semiconductor Corporation was selected through a competitive process adds strength to the Army’s validation of Navitas’ ultra-high-voltage SiC capabilities. Navitas said its GeneSiC portfolio is engineered, manufactured, and supported through a US-anchored supply chain. That attribute matters to a program seeking to establish domestic production of advanced power semiconductors.
The Army deal could add momentum to Navitas’ transition to the high-power market. In July, Navitas partnered with Magnachip Semiconductor to license its GeneSiC Gen 4 and Gen 5 technologies. That deal covers 1,200 V, 2,300 V, 3,300 V, and higher-voltage applications. Navitas subsequently agreed to invest $5 million in Magnachip to deepen the relationship. The companies are targeting opportunities in energy and grid infrastructure, energy storage, industrial electrification, and automotive markets.
The Army program adds technological credibility to a transition that is already showing financial momentum.
In Q2, Navitas’ revenue increased 22% sequentially to $10.5 million, and high-power markets grew more than 50% YoY. The company is expecting Q3 revenue of $13 million to $14 million. The midpoint of that guidance represents a 28% sequential growth. AI infrastructure markets, including AI data centers and grid and energy infrastructure, are expected to account for more than one-third of sales by year-end. Navitas isn’t the only power-semiconductor company trying to capitalize on AI’s rising electricity demands. See whether Vicor can turn its AI power opportunity into scalable growth.
If Navitas successfully develops the 10 kV platform and converts that technology into qualified products, the program could both expand the addressable market for its SiC technology and strengthen its position in high-power applications.
Technology Validation Needs to Become Revenue
The immediate limitation is that ALATTIS remains a prototype development and validation program. So Navitas Semiconductor Corporation must still demonstrate that the 10 kV technology can move from development into production.
Valuation highlights the hurdle further. At the September 30 close, Navitas carried a market cap of about $3 billion against $36.5 million in trailing-12-month revenue. That put the stock at roughly 83x trailing sales. Even using Wall Street’s 2026 revenue forecast of about $47.7 million, the stock still trades at around 63x forward sales.
That is a substantial premium to peers. Based on their latest forward revenue estimates, Wolfspeed (WOLF) trades at about 2.0x sales, Onsemi (ON) at 4.6x, and STMicroelectronics (STM) at 2.9x.
The premium reflects very high expectations for Navitas’ future growth, which means the Army validation has to translate into commercial revenue.
The bull case breaks down if the 10 kV program produces technical validation without significant follow-on demand. The other concern is Navitas’ high-power revenue growth fails to translate into sustainable profitability. The company remains unprofitable at this time.
Hedge Fund Conviction Grows, But Shorts Aren’t Deterred
According to the Insider Monkey database, hedge funds holding Navitas Semiconductor Corporation increased to 33 in Q2 from 24 in Q1. Major funds are also increasing their exposure to Navitas, amid signs of growing momentum in the high-power transition. D. E. Shaw increased its stake by 155%, while Citadel Investment Group raised its position 19%. Short interest stands at 17.6% of the float, representing about 40 million shares with 4.1 days to cover.
The Army award provides a much-desired government validation for Navitas’ technology as it pushes into the ultra-high-voltage SiC market. The test remains converting that validation into production and profit.
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