Navitas Semiconductor is making a high-stakes bet on the next generation of artificial intelligence infrastructure. By shifting from consumer applications to industrial-scale power systems for AI data centers, the chipmaker is positioning its gallium nitride (GaN) and silicon carbide (SiC) technologies as the backbone of server racks that will eventually draw megawatts of electricity. The strategy, detailed in the company’s “Navitas 2.0” roadmap, has already ignited a dramatic rally in its shares — but the same period has also seen a flurry of insider selling that gives investors pause.
The stock surged roughly 37 percent in a single week, touching new 52-week highs between $28.85 and $31.94. Earlier in May, it had already hit similar peaks near $28–$29. The catalyst was a combination of positive news flow and a short interest of about 21 percent, which forced bearish traders to cover their positions and amplified the upward move. Navitas, which has a high beta, has seen its shares roughly triple from the start of the year.
Yet the timing of the insider activity has created an uncomfortable backdrop. On May 27, RJH Management Co LLC sold 33,649 shares. The following day, the company itself reported a planned sale of 75,000 shares, valued at roughly $2.17 million. Even more notable, SEC filings from May 27 and 28 flagged potential insider sales of approximately 3.06 million shares in total. With around 233.7 million shares outstanding, that potential overhang has become a central talking point among market watchers.
Should investors sell immediately? Or is it worth buying Navitas Semiconductor Corporation?
The technological driver behind the rally is tangible. Navitas recently unveiled 800-volt power boards — both 800V-to-6V and 800V-to-50V — designed to eliminate intermediate voltage conversion stages in AI server clusters, boosting efficiency and computing density. The company argues that GaN’s switching speed becomes a decisive advantage once racks exceed the megawatt threshold. Hyperscalers are already rethinking their architectures, and Navitas intends to be the supplier of choice. In parallel, it has developed a 250-kilowatt solid-state transformer using SiC in partnership with the EPFL, and it has licensed its GaN technology to Cyient Semiconductors for the Indian market.
These advances are not yet reflected in the bottom line. For the first quarter of 2026, Navitas posted revenue of $8.6 million — a sequential increase of 18 percent and slightly above the analyst consensus of $8.18 million — but a decline of 38.7 percent from the $14 million reported a year earlier. The net loss came in at $33.8 million, weighed down by heavy research spending on the high-power pivot. The non-GAAP gross margin improved to 39.0 percent, offering a glimmer of operational progress.
Looking ahead, management guides for second-quarter revenue of approximately $10 million, give or take $0.5 million, with growth coming from AI data centers, network infrastructure and industrial electrification — segments that now account for the majority of sales. Navitas will provide further strategic details at the Evercore Global TMT Conference in San Francisco early next month, and later in June it plans to showcase its 800-volt DC data center solutions at PCIM 2026 in Nuremberg. Whether the insider selling will materialize on the scale indicated by the SEC filings remains to be seen, but for now the narrative is one of a company racing to capture a slice of the AI power market — even as its stock follows a volatile, two-steps-forward-one-step-back pattern.
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