Navitas Semiconductor Corp. (NASDAQ:NVTS) stock rose in Wednesday’s premarket trading after the company reported better-than-expected third-quarter results and issued an upbeat fourth-quarter revenue forecast.

The chipmaker also outlined plans to expand its artificial intelligence infrastructure business as it shifts away from mobile and consumer markets.

Navitas Beats Earnings Estimates, Raises AI Ambitions

Navitas reported an adjusted loss of 3 cents per share, narrower than analysts’ expected loss of 4 cents.

Revenue reached $13.99 million, beating the $13.17 million consensus estimate.

For the fourth quarter, Navitas forecasts revenue of $15.5 million to $16.5 million, above Wall Street’s $15.12 million estimate. The company expects a gross margin of 40.5%, plus or minus 100 basis points.

Navitas expects full-year 2026 revenue to grow about 7%, as demand from high-power markets offsets weaker mobile sales.

On Tuesday’s earnings call, CEO Chris Allexandre said Navitas expects its AI infrastructure business to triple in 2027, driven by accelerating demand for high-power solutions.

The company expects AI infrastructure to account for more than 40% of total revenue by the end of 2026. Allexandre also highlighted a strong order backlog extending into mid-2027.

Margins Improve As Cash Reserves Remain Strong

Adjusted gross margin rose 50 basis points sequentially to 40%, marking its third straight quarterly improvement.

Navitas ended the quarter with $531.5 million in cash. After a $126 million payment for its Claros acquisition, its pro forma cash balance stood at approximately $405 million.

The company reported no debt and said it has enough liquidity to support its growth plans.

NVIDIA Partnership and 800V Technology Fuel Expansion

Navitas identified four AI infrastructure opportunities: pre-800V power systems, 800V sidecar racks, native 800V architectures and grid modernization.

Native 800V products could enter production by late 2027, with broader growth expected in 2028.

The Claros acquisition adds voltage regulator technology for AI processors, strengthening Navitas’ silicon carbide and gallium nitride portfolio.

Navitas also announced 800V collaborations with NVIDIA Corporation (NASDAQ:NVDA) and Microchip Technology Inc. (NASDAQ:MCHP), licensed GeneSiC technology to MagnaChip and secured a U.S. government selection to develop 10 kV silicon carbide chips.

Its GlobalFoundries partnership delivered the first U.S.-manufactured fifth-generation GaNFast wafers.

The company also introduced an Integrated Fabless Manufacturing strategy to expand production capacity through technology ownership and manufacturing partnerships.

NVTS Price Action: Navitas Semiconductor shares were up 9.93% at $9.41 during premarket trading on Wednesday, according to Benzinga Pro data.

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