Navitas at Rosenblatt Summit: AI Data Center Focus

Investing.com

Published Jun 11, 2025 11:50AM ET

Navitas at Rosenblatt Summit: AI Data Center Focus

On Wednesday, 11 June 2025, Navitas Semiconductor Corp (NASDAQ:NVTS) presented at Rosenblatt’s 5th Annual Technology Summit - The Age of AI 2025. The company emphasized its strategic pivot towards AI data centers, driven by the rising power demands of new GPUs. While Navitas showcased strong technological advancements, it also acknowledged the gradual adoption timeline for its solutions.

Key Takeaways

  • Navitas is prioritizing AI data centers, focusing on gallium nitride (GaN) and silicon carbide (SiC) technologies to meet the increasing power demands.
  • The company has achieved a significant increase in power supply density, delivering a 12kW power supply within the same footprint as older 1kW silicon-based supplies.
  • Navitas is collaborating with major tech firms like AWS, Google, and Microsoft, and exploring opportunities with Tesla for solar and EV markets.
  • The transition to higher voltage data centers, including 800V architectures, is underway, with adoption expected around 2027.
  • Navitas' shares have risen 125% year-to-date, with a total addressable market (TAM) for data center solutions estimated to potentially reach a billion dollars in the coming years.

Financial Results

  • Navitas' shares have increased by 125% since the beginning of the year.
  • The company raised $300 million through its IPO to expand into higher power applications.
  • The TAM for data center solutions is projected at $5-10 million per gigawatt of power delivered per power conversion stage, potentially reaching hundreds of millions or even a billion dollars.

Operational Updates

  • Navitas has developed a 12kW power supply, marking a 166% increase year-over-year.
  • The company utilizes SiC for power factor correction stages and GaN for other stages in power systems.
  • The Intelliweave control algorithm enhances energy efficiency by up to 30%.
  • Navitas is developing ultra-high voltage SiC (up to 6,500 volts) and 850V GaN technologies, while also expanding into lower voltage applications.
  • Collaborations with TSMC and XFab support Navitas' fab-light model, reducing costs and enhancing supply chain efficiency.

Future Outlook

  • Navitas plans to target 48V data centers in 2025-2026 and 800V data centers around 2027, aligning with NVIDIA's Rubin processors.
  • The company is expanding beyond mobile chargers into solar and EV markets, with potential collaborations with Tesla.
  • Navitas is engaging with the Open Compute Project (OCP) to ensure alignment with industry standards.

Q&A Highlights

  • The shift to 800V data centers is driven by NVIDIA's push to reduce current and power distribution losses, requiring new power supply designs.
  • Navitas differentiates itself with GaN ICs featuring monolithic integration and a focus on high-power GaN applications.
  • The development timeline for new data center architectures, like 800V, is typically over 24 months.
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For a complete understanding of Navitas' strategic direction and technological advancements, readers are encouraged to review the full transcript below.

Full transcript - Rosenblatt’s 5th Annual Technology Summit - The Age of AI 2025:

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Good morning, and, thank you for joining Rosenblatt's Securities fifth annual Age of AI scaling technology conference. My name is Kevin Cassidy. I'm one of the semiconductor analysts at Rosenblatt, and it's my sincere pleasure to introduce Gene Sheridan. Gene is the CEO and cofounder of Navitas. Navitas is a pure play wide band gap semiconductor company having both gallium nitride and silicon carbide technologies in volume production.

Navitas' GaN products have revolutionized the mobile charger market, with higher power density, increased power efficiency, and smaller footprints, and that's compared to silicon based chargers. And now they've made significant inroads into the solar automotive and home appliance markets. But, this being an AI conference, we're gonna focus on the much needed data center, that needs increased power density and power efficiency. We now see Navitas is taking the combination of their gallium nitride and silicon carbide products to revolutionize the data center power supply market. So the, Navitas shares are up a 125% year to date.

Could be up a lot more even again today, but it's had a great run. You know, the power semiconductor market is huge. It's in billions of dollars and, plenty of room for Navitas to grow. So I'll ask, Jean to start off with an overview of Navitas, and then we'll get into some detailed questions around, data centers. And if you wanna ask questions, that, you can click on the quote bubble that's in your graphic on your screen that's on the upper right hand corner, and I'll read the questions to Jean.

So with that, Gene, thanks for, attending, and, I'll hand it over to you to give an overview.

Gene Sheridan, CEO and Co-founder, Navitas: Awesome. Thank you, Kevin. Great to, join you here for the big event and, obviously, very timely as we're hyper focused on AI data centers. But we started the company, Navitas, a little over ten years ago focused on gallium nitride. Nobody had adopted gallium nitride in any mainstream markets for power electronics.

Despite many attempts in the prior years, we zeroed in on two things, solving the remaining problem of how to drive and control this really fast and efficient transistor. And we did that by inventing the GaN IC that's integrating the drive control sensing and other functions into that chip to make it easier to harness the full value and get the full potential out of GaN. But secondly, we did it by focusing on mobile chargers, fast charging your phone, your tablet, your laptop. And that market, just a few years later, with those two, decisions and inventions turned into the mainstream adoption of GaN. We did our IPO raising 300,000,000 with the intent to bring GaN to higher power applications like data centers, and that has worked well.

We spent time, investing into higher power versions of that GaN, which is now GaN safe for high power, high reliability applications and also bidirectional GaN, which we'll come back to. But we also use that money to acquire fantastic silicon carbide technology, which is a great complement to GaN. They're actually both very similar compared to silicon. As you alluded to, they can make power systems far more efficient, higher power density, smaller footprint. Gallium nitride doing that for what we call kind of medium voltage, medium power applications, silicon carbide doing that perfectly for higher voltage, higher power.

You put them together, you actually need both for the future of AI data centers. So now we've turned our attention to AI data centers in the last two years. It's the number one priority for the company, and we're off to a great start, but it's early days in really building the next generation AI data center.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Great. Thanks, Jean. Yeah. You know, just last year at this conference, you announced a, 4.5 kilowatt power supply, and that was a industry leading amount of density. But recently, you just announced a a 12, maybe 12.5 kilowatt power supply, you know, and that's targeted at hyperscale AI data centers.

So, you know, that's a 166% increase year over year, which is much more than Moore's law would suggest. You know, can you describe how's that how how are you accomplishing this, and, is there more to go? And what do you you know, what's happening, and how does that compare to traditional power supplies?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. Traditionally, they were typically with silicon around an average of 1,000 watt per power supply. And then you take these and you slide them in, six of them across a tray, and you might have 40 trays, a bunch of them dedicated to power. So while the form factors evolve over time, we've gone in twenty four months from what was silicon at a thousand watts, we've gone 2.7, 3.5, 4.5, as you mentioned, 8.5, and now most recently 12 kilowatt. So that's a massive change in twenty four months.

We're very excited about it, but it's a lot of change. And it's a combination of pushing gallium nitride, pushing silicon carbide. We actually use silicon carbide on the stage called PFC, gallium nitride on that stage to create the entire power system. We're even changing architectures. Intelliweave is a new architecture for power factor correction in that stage, that makes it even better.

So you're doing a lot of things, pushing frequency up, changing architecture or topology as we call it, and pushing the limits of gallium nitride and selen carbon. All of that has come to bear to to deliver the best we've ever done now at 12 kilowatts, and that's that's really where the customers are focused going forward.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: And and that's what I just wanna make sure. It's clear that this is the exact same footprint, that was of the thousand kilowatt or a thousand watt supply. You're just coming in and now giving that rack 10 times more power.

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. There's two different, configurations. So you have CRPS is traditional where about half of that tray is dedicated to power and half of it does the processing like the NVIDIA processing. The new trend now is to dedicate the entire tray called an OCP or ORV 3.1 or v three form factor, which dedicates more of the power. So admittedly, we're creating more space or more footprint so we can increase that power.

But even with that, we've gone from 1,000 watts to 12,000 watts. So we made more space for power, double the space in some cases, but we've increased the total power by over 10 x. So as you alluded to earlier, a big improvement in power density.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. And maybe if you could just elaborate a little more on the the role of gallium nitride and silicon carbide, and what these technologies are doing to increase it higher efficiency also, in in power density.

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. Kind of the key to the power electronics world, and it certainly applies in spades to data center, is speed and efficiency. Efficiency is more obvious. Of course, we wanna make the power supply as efficient as possible. So as we're converting and delivering that power, we don't wanna waste it because wasting that power or inefficiency of a power supply actually translates to heat.

We're gonna burn up that energy as heat, then you've got a thermal management problem. And most people know heat is sort of the enemy of data centers. The most cost costly element of operating a data center is the cost of thermal management. The number one cost is cost of electricity. So actually, efficiency is helping you on both of those problems, cost of electricity, cost of thermal management.

But that's just efficiency. Speed, operating the power supply faster allows you to deliver more power in smaller size, the power density you talked about. Gallium nitride and silicon carbide both can operate three, five, 10 times, even 20 times faster than silicon. So we're generally pushing up frequencies from tens of kilohertz to hundreds of kilohertz and moving into the megahertz range.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. Maybe, you know, yesterday, at our conference, we had NVIDIA, their senior vice president of networking, but he emphasized how the compute is now the entire data center, and that they have to network together all of these GPUs. But, you know, the new GPUs are using, you know, I think it used to be 300 watts, and then it went to 700 watts, and now their latest is a thousand watts. So what's that doing to the, you know, rack power that's needed and even the power coming into a a data center?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. Everything is pretty much proportional. So it starts with that GPU. You're right. A 100 to 300 watts was very common for years, and that was going up.

So it was already a good power challenge. It's always a a good opportunity for us, and we were focused on it. But we went from an average of a 100 to 300 watts per CPU to Blackwell is at a thousand watts plus. Rubin will be two to 3,000 watts, and that's a exponential rise. And then you put clusters of them, many of them in parallel, and that translates into the rack power.

Rack power is lots of these trays. As I said, it's got a lot of GPUs. Rack power with those 100 to 300 watt CPUs used to be maybe 10,000 watts in total that we had to power from the power supplies. With Blackwell, that's headed quickly to a 100,000 watts. And then most recently, NVIDIA announced a plan to go to a megawatt rack power to be ready for Rubin and beyond.

I mean, it's crazy crazy numbers, but we love a really good technical challenge. Obviously, it's a great commercial opportunity.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. Yeah. And before I wanna dig in more on the NVIDIA, and that's most of my questions are around NVIDIA that are coming up. But, you had just you you had mentioned the Telaweave, and maybe if you could, go into the advantages of what the Telaweave is and, you know, how does that contribute to the power savings?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. And it's kind of neat because it goes to show that we're working not just on making that power device better, which makes the whole system more energy efficient and faster. How do we change the control architecture or the algorithm? So we're really kinda getting in the software business. It's a step in that direction.

IntelliWeave is a software or control algorithm for the stage of the AC to DC converter. I mentioned it earlier, PFC, power factor correction. Traditionally, that operates at a slow frequency. Even with GaN on silicon carbide, it's hard to push that frequency higher, and its energy efficiency is somewhat limited, again, even with GaN on silicon carbide. Intelliweave unlocks more of that potential.

By changing the switching algorithm or control algorithm, we can use gallium nitride or silicon carbide in in to operate in what we call a soft switching mode, which allows that frequency to go way, way up, kind of unlock that full potential of GaN or silicon carbide on the POC, and it can save up to 30 of energy savings. So whatever we did to go from silicon to GaN or SiC without IntelliWeave, we're pushing that a 30% more energy efficiency. And that's a control algorithm we basically offer to our customers for free when they design with our chips on that stage.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Great. Yeah. But and and, you know, so a couple of weeks ago, investors took notice of Navitas' data center progress with, NVIDIA announcing partnering with Navitas, you know, among other semiconductor power semiconductor players. But can you still walk through with us what this new power structure looks like for the, data centers that NVIDIA is defining.

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. It gets a little technical, but the most important thing to know is is Ohm's law. There's Moore's law, and in power, we have Ohm's law. That's power equals current times voltage. So if you wanna deliver a lot of power and the voltage is kept low, it means you have to deliver a lot of current.

Right? Current times voltage to make that big power. So the power is going way up. The question is how do we deliver it? Traditional data centers using silicon distributed that power at a pretty low voltage 12 volts.

That means a lot of current. Now if you're a hundred, three hundred watts per processor, it's not terrible. Thousand watts of processor, 3,000 watts of processor, this is a problem. We've been working on 48 volt data centers. The industry had.

So that was in the in the works. AI came along. We moved very quickly to 48 volts. The other cool thing about it is that the voltage goes up four times. The current will go down four times to deliver the same power, but the power distribution losses related to that current are proportional to the square of the current.

So instead of being four times less current, it's 16 times less distribution losses. So there's a lot of leverage in pushing that voltage up to get the current down. Now what did NVIDIA announce? They said, well, 48 volts is a good step. It's not enough.

We gotta go big, really big. So they're going to 800 volt data centers. 800 volts is almost 20 times higher voltage, almost 400 times less current. Really, really big advantages and benefits are coming from that step up. What does it mean to power chips?

Well, it changes a lot of the architecture. And now you need really high voltage silicon carbide, high voltage GaN, and you still need low voltage GaN to ultimately deliver that power to a low voltage GPU. So we love it because it actually played perfectly into the strength of our silicon carbide and our GaN, allowing us to address the entire power delivery really efficiently, really well.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: And and just to be clear that these you can't just bring in new voltage to an old data center. Right? This would have to be brand new data centers bringing in new power supplies, new everything.

Gene Sheridan, CEO and Co-founder, Navitas: That's right. This is a big change. So it's not quick. We've been very clear. There's a lot of development to be done here.

It's still early days, prototyping, hardware testing, refining. We're hooking up to the grid in a completely different way. Traditional data centers hook up to the grid grid in a traditional way, one ten or two twenty volts AC. But if you're gonna then bump that back up to 800 volts, that's very inefficient. The grid actually starts at tens of thousands of volts.

So why would you take it all the way down to one ten or two twenty just to then rise it back up to this 800 volts? That's wasteful. So one of the key dimensions of the 800 volt data center, as NVIDIA described it, is hooking up to the grid at really high voltages. Get deep into that grid. Start at 10,000, 13.8 is the specific voltage, step that down to 800 volts.

And we're not gonna do it with a traditional low frequency transformer that has no semiconductor content. We're gonna do it with something called solid state transformers, SST, which are semiconductor based switching basically like a power supply to make that step down far more efficient, probably more reliable, smaller, smaller footprint. And that is gonna require super high voltage, ultra high voltage, solid carbide, which happens to be one of our great strengths coming from the Genesek acquisition.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: That's great. And and that's even one of the long poles in the tent right now for, data centers is the trying to get those transformers just outside to, you know, bring the power in.

Gene Sheridan, CEO and Co-founder, Navitas: That's right. It's a big I mean, even even Musk's, said he thought this was gonna be one of the biggest shortages after the semiconductor shortage, you know, a few years ago. So I think and this is not specific to data centers. It's actually an exciting new trend. Everybody knows we've got to upgrade this grid to to connect to solar, to connect to renewable energy, to power cities, but data centers are becoming like cities.

So it's a great place to start.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. It's great. That's and, Lee, you know, you mentioned all the AI workloads is adding on all this extra power that's needed. How are you shooting ahead of the duck, I guess? And you mentioned a higher voltage with, silicon carbide.

Does your gallium nitride gonna, increase in the capabilities of power?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. On silicon carbide, we can already go we call it ultra high voltage anything above 2,000 volts. We can go 3,000, 4,000, 5,000, even 6,000 volts. We're the only company in the world that can get to 6,000 6.5 k v, actually, 6,500 volts. So we're really ready for that, and we're actually working on 10,000 volt silicon carbide.

Crazy numbers. But if you hook up to that really high voltage grid and you wanna efficiently step it down to 800 volts, whether it's 800 volts to power a data center or 800 volts to power fast charge your car, these are common voltages, common architectures, common technologies. Gallium nitride, we're also looking to push up that voltage. It's good at six fifty volts. We're looking at eight fifty volt gallium nitride.

We're also taking gallium nitride to lower voltages because you still need the 48 volt converter and ultimately step that down to a processor that runs at one volts. So taking GaN into higher voltages and lower voltages as a clear trend and road map item and then taking that silicon carbide, we've already got at 6.5 k b, 10 k b, and even higher. So it's a pretty clear road map, but it's a lot to do. It's a lot it's an exciting, engineering challenge for our teams.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. And that's you know, as I've talked to investors, you know, a lot of them are maybe are are used to the digital world where things happen very quickly and, you know, you'd replace d d r four, d r m with d d r five, and it happens in a year. But with power supplies, you know, things move a little slower. I think you've been very public about all the design wins you have, but, you know, it takes a long time for this industry to switch over to from silicon based power supplies to gallium nitride and silicon carbide. You know, what what is that?

What you know, can it help, investors understand why does it take so long?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. Typical data center development times. We started with mobile chargers. Those are pretty quick, can be six to nine months. That's fast in our world of power electronics and in the world of hardware and electronics in general.

Data centers are typically twelve to eighteen months designing existing architecture ones. If you wanna throw a whole new architecture into the mix like an 800 volt data center, you're often looking at 24 or longer. And even NVIDIA and their announcement for the 800 volt was clear that's really focused on Rubin class processors, which is really a 02/1927. That's two years from now. Well, that fits the model.

Right? We'll be doing prototypes this year, maybe some early production ramps late twenty six, but this is a lot of work to do to, to solve that problem for 2027 and beyond.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: And maybe, you know, the way I I looked at it too is, you know, of course, it's not till 2027, but you do have designs today. And having NVIDIA endorsing the, new types of power supplies maybe accelerates some of the qualifications you have already. Have have you seen anything related to that, or is that just my imagination?

Gene Sheridan, CEO and Co-founder, Navitas: No. It's no. It's a good point. We've already started, as you know, on the the 48 volt data center is happening today. We started with AC to DC converters using high voltage GaN or silicon carbide.

That work continues. We have 40 customer projects that are ramping throughout this year and into next year. We've just started sampling low voltage GaN for the 48 volt DC to DC converter. That will start ramping again in 48 volt data centers next year and continue even with the 800 volt data center into 2027. So that work is happening.

We're ramping '26. We're ramping or sorry, '25, '26. But, obviously, the numbers and the opportunities get bigger and bigger as we get into '27 with the 800 volt data center.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. And, you know, have you received feedback from, you know, the major, cloud providers, you know, like AWS, Google, Microsoft? Are you hearing from them, or is it just through the power supply customers?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. No. We work directly with the data center hyperscalers. We really need to understand just so we could work closely with NVIDIA to understand what's that road map. What do you need?

And and NVIDIA challenged the whole industry to double power every year, and that's a lot of what we're all talking about here and working on. But AWS, Google, Microsoft, Azure, there's many many many people that we're working with, as I said, 40 customer projects in development. And we thought we were pretty well connected with most of this industry. But when the announcement came out, we certainly got a lot of inbound calls from people saying, hey. Solid state transformers.

Let's get going. 800 volt power supplies. Let's get going. So it's definitely added some credibility and visibility for Navitas to create even more opportunities. So we're we're excited about that.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: And and when you say your design wins, you know, I guess, how many power supply manufacturers are there in the market and, you know, how many are you engaged with? I know we had you had a press release earlier about, Great Wall, power supply company as as a win, but and then you've got all the Taiwanese manufacturers. But is you know, what's the obstacle of them moving to, you know, the the gallium nitride based designs rather than silicon?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. There's probably and you can kinda break it down to these different power conversion steps. The DC to DC converter of 48 volt has a maybe 10 to 20 customers that work on that. It's pretty concentrated. It's not like it's hundreds.

So let's say 10 to 20 broadly serve that market. Then the AC to DC converter, another 10 to 20, somewhere in common, somewhere different. Now we got that ultra high voltage solid state transformer tends to be a different group of customers. That might be ten, fifteen. So all of those are the guys that, we engage with, and we're doing pretty well.

But, you know, they're all at different stages of development, product concept, feasibility. Obviously, there's different stages to their maturity.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. Yeah. And, you know, there's other consortiums, you know, like, in particular, we attend the Open Compute Project where they define the next rack of compute and get the whole industry behind it. Are you working with consortiums like that, the open compute project?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. We follow the standard very closely because OCP is the one that advocated for dedicating entire shelves, expanding that form factor so we could push that power level up as we talked about before. So we've we've gotta really track carefully how the form factors and interoperability or configuration specs are changing and evolving with standards like OCP, and then talk directly to the hyperscalers to know what's that future processor road map so we know what power requirements are coming over the next few years and kind of piece that all together then directly back to the power supply companies, DC to DC, AC to DC, and greater solid state transformers. So it's kind of a complicated ecosystem, but that's the world we live in and how we try to triangulate and make sure we got the right road map at the right time.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Great. And, you know, maybe, just one other thing with all this power savings that gallium nitride can deliver in silicon carbide that, you know, governments are worry you know, have a lot of green programs. You know, are you getting any pull, any carbon footprint type of advantages by by bringing your products out?

Gene Sheridan, CEO and Co-founder, Navitas: Well, direct, you know, direct energy efficiency is gonna directly translate to c o two savings. NVIDIA announced at least a 5% savings in their announcement about 800 volt data centers. We believe if you zoom out overall power efficiency of an entire data center when it was silicon and 12 volts, was maybe 70 something percent. With GaN and silicon carbide in a 48 volt data center, we're pushing that well into the eighties overall. That means 30% of the energy going in never got to do its work, never got to the GPU.

It got burned up as heat and see wasted c o two contributing to the c o two problem. Ultimately, the 800 volt data center, gallium nitride, ultra high voltage solid carbide, a low voltage GaN, all of those will push us well into the nineties. So those are big steps forward, but these are multiyear efforts as we talked about earlier to get there.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Now the the, the key question I get from investors is, know, do you what what can you put as the TAM? You know? I know in your original presentation, you said how big the power management market is. But, you know, with this change of going to even higher voltage in data centers, do have a stab at what the what what that does to the total available market?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. We're actually rolling that up now because it's so new. There's still a lot of moving parts. So we're kind of doing some thorough party estimates, understanding for each block what we could expect. Roughly, if you wanted to look at it, it's about 5 to $10 per power conversion stage or 5 to $10,000,000 per gigawatt of power delivered for each power conversion stage.

And there's up to five power conversion stages that we're working on. You know, what does that translate to in the overall world? You know, it's certainly hundreds of millions of dollars headed to a billion dollars over the coming years, and we're really scrubbing that now. We'll probably rolling out a a more formal and and thoughtful TAM estimate, in coming weeks.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Okay. Great. Be interested to see that. Yeah. And and, you know, as I said, when, NVIDIA made the announcement, they they, of course, named, you know, monolithic power Texas Instruments, Infineon.

And, you know, maybe focus on Infineon. I I think of them as your cousins because of their acquisition of international rectifier, which is your heritage. And but you you have agreements with them where, you have sourcing. Can you talk about why what's important about sourcing and why Infinia?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. We saw this even in mobile chargers. Ultimately, the technology is exciting, and you can definitely get a lot of sole source business on the high end of probably any market. But once you wanna go for the mainstream, once people wanna jump in with two feet and bet their entire business on it with their mainstream volumes going to new technology, you know, they naturally get a little nervous about being sole source. And so two sources becomes really valuable.

And I'd rather get, you know, 50% of a really big number than a 100% of being sort of confined to that high end of any market. We saw it on mobile chargers, which is where we started thinking, maybe we need a partner. Maybe we need a source, at least for select cases. You know, there's leaders in solar that are gonna go really big in GaN in the next twelve months. There's major EV players that are gonna go really big with gallium nitride.

And certainly, it's true here with data centers and it's true with NVIDIA. So they the data center guys wanna go big with GaN and solid carbon. We can really benefit from having a source, at least in select cases. Infinion I think Infinion turned out to be a really good option for us. They have the range of GaN.

They also have a range of silicon carbide. They're not quite matching our generational position, but capable and competent. So you put it all together, it made good sense for us. And I think it helped us a lot to to solidify our position in collaboration with NVIDIA where they're looking for two solid sources across a lot of these applications.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Great. Yeah. And, you know, there there are plenty of other competitors and some still sticking with silicon saying you can squeeze more juice out of that lemon, and and, there might be, some new guys playing coming into the gallium nitride. You know, one of the questions from the audience is, how do you differentiate from power integrations with, their solutions for both silicon, but then gallium nitride they've that they're, coming into.

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. Yeah. That's right. Well, we're we're the only ones creating true GaN ICs. And by GaN ICs, I mean, monolithic integration of critical functions like the drive function.

How do how do you drive and control a super fast and efficient transistor of gallium nitride is very difficult to do. Trying to do that with external silicon drivers, even co packaged in the package, is a challenge. So that's our unique advantage, whether it's Power Integrations or anyone else. We've also pushed our GaN into high power GaN. I haven't seen that from Power Integrations or most others.

So our GAN Safe product line that I talked about or bidirectional GaN, those are really squarely focused on applications like tens of thousands of watts, even 100,000 watts, as we're seeing with the data center. So I don't see power integrations there in the data center, but we see Infineon as a good partner to help us make it happen.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. And I think, power integrations may have even announced getting out of the mobile charger market. It just got to be low too low priced for them. But I think if you have a higher end, you know, maybe you can address that of, you know, where the spread is in mobile chargers of, you know, there's five watt chargers to a 140 watt or maybe higher now. But, yeah, where where do you see that market?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. You know, as the power goes up, GaN brings more value. So if you want a slow charger, slow speed of charging is proportional to the power. So five, ten, fifteen, twenty watts, relatively slow chargers. Silicon does the job well.

If you wanna use GaN, it'll give you a little benefit, but not a lot, and you're gonna be more price sensitive in those markets. If you really want a fast charger, you really wanna be talking 65 watts and higher. The the more the power the if you try to do it with silicon, you can, but that adapter is gonna get really big. It's not gonna fit in your pocket, big and heavy. The term brick is there for a reason.

Right? You look at a GaN charger, nobody's calling them bricks anymore. These things are tiny, miniaturized, slide in your pocket, but pack a real punch, a lot of power. So as you go up in power, gallium nitride brings a lot of value. Our flavor of gallium nitride with the integrated driver and integrated functions allows us to go up in power and up in frequency and up in efficiency better than anybody else.

So we'll always do better at that leading edge bleeding edge of fast charging and high power. And, of course, that's the trend of the whole industry. So it's sort of moving in our direction, which is good.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. It comes in extremely handy when when you're, on cross country flights and you only have one power outlet. Yeah. With a hand charger, you can charge three different devices at the same time.

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. You and I are both road warriors, so we can really appreciate it.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: It makes your neighbor next to you a little little friendlier than stealing Right.

Gene Sheridan, CEO and Co-founder, Navitas: I know. I'm always tempted to just say, you know, here, take one. Just have one for free. I'm sort of a walking GaN charger advertisement. Yeah.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: We had one other question from the audience is, you know, about Tesla news and regarding any future investments with Tesla and maybe even on their, you know, maybe exposure into the onboard charging and even Tesla.

Gene Sheridan, CEO and Co-founder, Navitas: Was there something on the investment? Tesla was that a Tesla announcement on investment or other one?

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. They're they're asking about the Tesla news regarding future investments.

Gene Sheridan, CEO and Co-founder, Navitas: Okay. I'm not sure what the investment is, but certainly we see, a lot of our you know, Tesla is sort of the the perfect customer for us, over time. I don't have anything specific to announce, but, obviously, they're in solar. They're in energy storage. They're pushing the limits of EVs.

They're pushing the limits of fast chargers. Well, all four of those are really interesting, and they're creating their own data centers and their own AI processors to power their fleet of self driving cars. So they have it all they have it all going on. So we love Tesla. We love where they're going, from a power electronics perspective.

It's a nice fit for us. Nothing specific to announce today, but there's a lot of great opportunity there that we're certainly hustling on.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. One of the things that impressed me when I met you and met Navitas is even for a small company, and you you know, it's a breakthrough technology that not a lot of engineers coming out of college knew how to use. But you came out to the market and started putting in design centers. Can you talk about the expansion of your design centers or what what those centers are bringing to the market?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. And and we, we found early on you can't just make a better transistor. If you make a better transistor, the rest of the system has to get redesigned. And this is an industry, like you said in the beginning, pretty conservative. They've been designing power supplies with silicon for the same way for thirty, forty years.

Low frequency, that means low frequency controllers, magnetics, capacitors, EMI filters, and transistors in silicon. Everything's changing. And if you just make a better transistor, you're gonna be waiting for the entire ecosystem to develop. Where are the high frequency controllers? Where's the high frequency magnetics?

Where's the training for the power supply engineers to design at this higher frequency? So we knew we had to take a more proactive effort. So in mobile chargers, we have a team that can really design the entire mobile charger or the guts of it anyway, all that power electronics for the customer. And frankly, that not only speeds it up for the customer, and we worked on high frequency controllers. Now we do our own high frequency magnetics.

We're very good at that. High frequency EMI, we're very good at that. It teaches us how to make the GaN better for the next generation. What should we integrate? How should we tune it?

How does it need to evolve higher voltage, higher power, whatever that is? So it's kind of a win win. But for a small company, as you alluded to, we can't we can't do it all. So we have to be really selective. It's power is a huge market, which is exciting, but that's also the problem.

A small company tries to do it all, we're gonna we're gonna be overwhelmed, and we're already overwhelmed. So we're really pivoting now. We'll keep going on mobile chargers. EV is a good longer term play, but it takes even more time, obviously, obviously, design cycles. AI data center is now our number one priority for all the reasons we talked about, and we've got great system design capability in that space.

And we're gonna grow that even faster to cover each of these areas we talked about earlier.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Yeah. Yeah. And that's where you know, I think, again, the NVIDIA announcement probably helped pull some of the data centers into the upgrades right now. And but maybe as we talk just a little bit about the other markets that you had industrial, you know, appliances, just lots of home appliances that have, inefficient power supplies. Can you talk just a little bit about that, of how that that market is developing?

Gene Sheridan, CEO and Co-founder, Navitas: It is. Yeah. It's not a another it's a pretty conservative one, as you said. So the development times there are even longer. Two two years is typical.

But home appliances all are consuming more and more powerful powerful motors, compressors, refrigerators, and they all want energy efficiency for the same reasons as everybody else. So upgrading to gallium nitride or silicon carbide on the higher power, is a natural next step. A lot of them have big heat sinks, which are trying to manage the thermals. Again, back to thermal management. If I can run more efficiently, you're gonna reduce that cost of electricity.

You're gonna get rid of thermal management like the cost of manufacturing and placing down large heat sinks. And in many cases, we're shrinking down the size, especially for more home appliances that might be smaller and power density driven like hair dryers and and home appliances like the smaller home appliance sizes. So that's a nice market. It does take time. Not the top focus for us because we're so busy with AI data centers.

Mobile and EV is sort of our top three focus areas.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Okay. Great. And the, you know, silicon carbide conversations have come up a lot with Wolfspeed having some financial issues more than technology issues. But what do you see in your supply chain for silicon carbide? Are you seeing prices coming down or availability improving?

You know, what's how's the supply chain look?

Gene Sheridan, CEO and Co-founder, Navitas: Yeah. Our fabless model or what we really call fab light because we're very hands on with bringing up the technology and owning and managing the technology. We use TSMC for gallium nitride, and we use XFab in Texas actually for selling carbon. So I think that fab light model has actually paid off really nicely for us in what is really a semiconductor downturn. AI data centers is the only real growth sector right now.

So that fabless model means we don't have the burden of a lot of overhead, a lot of depreciation. And our and our foundry partners, TSMC and Xfab, their loading is pretty low right now, but most markets pretty soft. So they're hungry. So we see costs coming down the supply chain, cycle time shortening, and lots of upside capacity to apply that to the growth engine of our industry, which is now AI data center. So it it really has helped us with our fab light model on costs and supply and capacity availability.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Great. Now pull the audience for, any other questions. We're not not getting any more from the audience. Is there any any other closing remarks you'd like to make, Gene? We're we're down to five minutes left.

Yeah.

Gene Sheridan, CEO and Co-founder, Navitas: Sure. Sounds good, Kevin. Well, I think, in summary, as I said, the the market is huge. Gallium nitride and silicon carbide. Silicon carbide is already a a larger market, a multibillion dollar market.

We're a relatively small player, but we've got the leading edge technology, especially in that ultra high voltage. So very excited about upgrading the grid to power data centers and the grid in general with that ultra high voltage technology. Gallium nitride is now getting adopted not only in AI data centers, but also going into mainstream solar in the next twelve months and mainstream EV in the next twelve months. So those are the big waves that we're really pushing out, expanding beyond the mobile charger base where we started, and that's where we're focused over the next twelve to eighteen months.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Right. There there we did get one more question in, and, I don't know if you can answer it directly, but, you know, what, what's the microinverter, Von Enphase, their generation? This was, based on Navitas. Can you talk about that design?

Gene Sheridan, CEO and Co-founder, Navitas: Oh, yeah. Enphase has been pretty public about their intent to go to gallium nitride with IQ nine, which is their next generation. They've been pretty public that they're working with Navitas and others. It's not an exclusive thing, but we're excited about it. So what I just alluded to, gallium nitride going mainstream into solar, that's obviously one place, we see that happening.

And they're tracking, as they publicly explained, to launch I q nine, later this year. So we'll see that ramp, at the very tail end of this year and then ramping nicely into next year.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Okay. Great. Thanks.

Gene Sheridan, CEO and Co-founder, Navitas: Yeah.

Kevin Cassidy, Semiconductor Analyst, Rosenblatt's Securities: Matt, I'll give it one more poll. Otherwise, I'll say, thank you everyone. And, Gene, thank you for your time and getting up early for us.

Gene Sheridan, CEO and Co-founder, Navitas: Of course. Thanks for having me, Kevin. Always great to chat with you. Glad to participate. Thank you.

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