管理層發言
Hello, and thank you for standing by. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Navitas Semiconductor Second Quarter 2026 Earnings. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Please go ahead.
Good afternoon, and welcome to Navitas Semiconductor Second Quarter 2026 Financial Results Conference Call. Joining us today are Navitas's President and CEO, Chris Allexandre; and CFO, Tonya Stevens. I'd like to remind listeners that management's prepared remarks contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that's contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore, we refer you to a more detailed discussion of risks and uncertainties in the company's filings with the Securities and Exchange Commission, including Forms 10-K and 10-Q. In addition, any projections as to the company's future performance represent management's estimates as of today, July 27, 2026. Navitas assumes no obligation to update these projections in the future as market conditions may or may not change except to the extent required by applicable law. Additionally, the company's press release and management's statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 90 days in the Investor Relations section of Navitas' website at www.navitas.com. And now it's my pleasure to turn the call over to Navitas' President and CEO. Chris, please go ahead.
Good afternoon, and thank you for joining us on today's second quarter 2026 earnings call. We appreciate your continued interest and support as we execute our strategic transformation to Navitas 2.0. In the second quarter, we delivered increasing revenue of 22% sequentially, coupled with a stronger third quarter guidance. High-power markets grew more than 50% year-over-year, serving as further evidence of the building momentum in our GaN and high-voltage SiC product portfolio, especially in our focused area of AI infrastructure. We're also delivering on our Navitas 2.0 transformation. We are well ahead by over a quarter of expected action for nearly all sales to be coming from high-power markets by year-end, with revenue contribution from mobile and low-end consumer being insignificant. We continue to deliver step by step on what we said we would do, and this quarter serves as another proof point of our consistent progress. Over the past several quarters, we have aggressively pivoted the entire organization to focus on high-power markets, where Navitas GaN and high-voltage SiC technology can deliver meaningful differentiation and increase long-term value. The resource reallocation and organization realignment is now substantially complete with new leadership in place and a refreshed product and technology roadmap. We are sharpening our focus on AI infrastructure, which comprises both AI data center and the grid energy infrastructure required to power them. Combined, this AI infrastructure market represents the vast majority of our long-term serviceable addressable market for GaN and high-voltage SiC and underpins our future growth trajectory as a high-power company. Turning into a closer look at our reported results and progress for the second quarter. As previously mentioned, total revenue increased 22% sequentially to $10.5 million, driven by growth across our high-power markets. High Power represent the majority of our overall revenue mix with revenue contribution from mobile in Q2 declining both sequentially and year-over-year as in the prior quarter. I also want to highlight that both GaN and SiC contributed to our sequential growth with a particular acceleration in our SiC business during the quarter. As expected, we also delivered expanded gross margin as a result of a more favorable revenue mix toward higher-value, higher-power product and improving scale. Notably, our strong momentum continues to build and accelerate into the second half of the year. Our expanding backlog extends beyond 2026 coupled with a record book-to-bill supporting our expectation for continued double-digit quarterly growth through the second half of the year. The third quarter will also represent a return to year-over-year growth, driven entirely by high-power markets. This also translates to achieving mid-single-digit revenue growth for the full year, while similarly having substantially exited the mobile and the low-end consumer market. This is a significant change in the revenue composition for the company and clear evidence that we are delivering on Navitas 2.0 transformation, with growth increasingly driven by a combination of AI data center, and grid and energy infrastructure. We expect AI infrastructure market will represent more than one-third of our total sales by year-end, setting the stage for continued momentum in 2027. While we are nearing completion of our transformation to a high-power, sharply focused company, our focus continues to be grounded in four key pillars: market focus, technology leadership, operational efficiency and financial discipline. Starting with our focus on high-power markets. The rapid adoption of AI is driving immense market demand to overcome critical power bottlenecks across AI infrastructure including both AI data center and green energy. As a result, Navitas' unique ability to deliver high-power products, leveraging both GaN and high-voltage SiC technologies, means we are benefiting from accelerating momentum to enable customers' high-power applications within data centers as well as the grid and energy infrastructure needed to supply them with power. Together, those two areas of AI represent the large majority of our long-term SAM and growth trajectory and where the company is headed. In AI data center, we are currently generating growth ahead of the market transition to 800V DC. For example, increasing power level in AC/DC power supply units are driving the need for higher density which, in turn, is accelerating the replacement of silicon with our high-voltage SiC. We are also actively engaged with hyperscalers, merchant power customers, telecom OEMs, ODMs and multiple programs ramping in the second half of 2026 that will accelerate throughout 2027. We're also seeing strong traction in DC/DC PSUs and battery backup units where both our SiC and GaN solutions are being designed in. Again, this activity is happening today in advance of the 800V transition. In fact, we continue to believe that the transition to 800V architecture for next-generation AI data centers will happen in 2027. Various xPUs and GPUs with hyperscalers will introduce it at different times, and it will unfold in a series of steps. Each step will represent an inflection point that drives increasing momentum and explosive growth for Navitas high-power GaN and high-voltage SiC content. I will briefly walk through each of those inflection points, which are also outlined in the investor slide deck that we've posted to the Investors section of our website. What's clear is the evolution to 800V is inevitable as it remains the industry's only path forward to achieve much higher power and higher density AI racks. The first inflection point is the second half of 2026 ramp and accelerating in first half 2027. SiC adoption in AC/DC PSUs is being driven by power scaling and density requirements independent of the 800V DC initiatives. As AI data center racks require more power, it is driving AC/DC PSUs, which ultimately drives higher density and therefore accelerates the replacement of silicon by SiC even with 48-volt DC output. This is already underway, and the growth is happening now and will continue throughout 2027 and beyond. Following, there will be a second inflection ramping in mid-2027: the introduction of the 800V bus bar in the sidecar rack with power system elements such as AC/DC power shelves and BBUs moving from the IT rack to the power sidecar with output of 800V DC to the IT rack. This change is bringing additional high-voltage content in higher-power AC/DC PSUs now with 800V DC output plus new SiC and GaN content in top-of-rack DC PSUs and BBUs. We are in advanced system design and reliability testing with several key customers and are preparing the ramp. Then the third inflection point, ramping mid to late 2027 and really accelerating in late 2027 and early 2028, is the integration of the high-density DC/DC conversion tightly into the GPU and xPU trays using GaN for its superior switching frequency and power density in megawatt-scale racks across various GPU, xPU and hyperscalers at different times. At that point, a fundamental change happens in data center rack power architecture: 800V comes in straight to the servers. This is what most refer to as native 800V. We're highly confident in our position for the 2027 ramp with our GaN. Similarly, the AC/DC PSU will continue to be in higher demand for high-voltage SiC with increased power level and density on top of BBUs and other power systems. Lastly, there would be a fourth inflection point in 2028 and beyond. This is where solid-state transformers come into play on-site at data centers, taking mid-voltage AC electricity from the utility grid and directly converting to 800V DC, which gets distributed across the data center. This is the full 800V DC evolution with ultra-high-voltage SiC and GaN across grid modernization, solid-state transformers and end-to-end power delivery from grid to core with a full wide-bandgap solution. Complementing this significant opportunity within AI data center is the equally large and even longer-duration market opportunity in grid and energy infrastructure. Today, we are actively advancing design activity and sampling across ESS, solar farm converters, PSUs and solid-state transformer applications. Our recently introduced 2.3 kV and 3.3 kV GeneSic modules received excellent feedback, and customers have begun requesting volume samples for system-level testing in the second half of the year. We're also seeing early interest in our new isolated TO-247 family, which offers unique advantages in liquid-cooling applications. Importantly, I want to reemphasize that Navitas remains technology agnostic, and we are prepared to offer customers the optimal solution, whether that be GaN or high-voltage SiC across the full power chain from grid to rack. This unique flexibility allows us to capture more content per system as well as support multiple architectures. As previously mentioned, both GaN and SiC are contributing to the current growth, and we expect AI infrastructure to drive the substantial majority of our revenue and growth going forward. Turning to our second key pillar. Technology leadership is essential to our success, and we continue to diligently invest in innovation and expanded product roadmap for both GaN and high-voltage SiC. On GaN, we are advancing our prepackaged platform solution, including the 800 to 12-volt DC/DC power delivery board demonstrated at recent industry events with an 800 to 12-volt version in development. We have kicked off a new program utilizing Navitas' unique solution to maximize system efficiencies on the secondary side of 800V data center topologies. Our industry-leading DFN 8x8 two-site cool package continues to gain broad adoption with superior power density, thermal performance and board space savings. Our 650-volt, 11-milliohm GaN FET remains the lowest RDS(on) high-voltage GaN device in the industry, and we have a significant number of customers preparing for mass production. Additionally, our medium-voltage 100-volt GaN is seeing increasing adoption for secondary-side and other applications. On the high-voltage SiC side, our GeneSic technology based on our proprietary trench-assisted planar architecture continues to differentiate with its best-in-class reliability, efficiency and manufacturability—attributes that are increasingly critical as voltage scales for grid and energy infrastructure applications. We recently introduced our isolated TO-247 product family spanning 1.2 kV to 3.3 kV, delivering module-like performance in a standard discrete footprint with integrated isolation for direct cooling and simplified customers' manufacturing. As mentioned earlier, we're also seeing customer traction in both AI data center and grid and energy infrastructure applications. We also recently expanded our SiC portfolio with a newly introduced 1.2 kV JFET product line to be released early next year initially targeting AI data center, solid-state transformers and energy grid infrastructure applications. Our new JFET product line opens the door to address an additional $1 billion of incremental TAM by 2030. Also, we continue accelerating towards our ambition to deliver best-in-class ultra-high-voltage SiC technology and products and are already in discussions with selected customers regarding the planned third quarter release of our new 6.5 kV SiC technology, which we expect to unveil very soon. Additionally, we are currently engaged in the development of next-generation 10 kV SiC devices with a prominent lead customer and an expected announcement in the coming weeks. In addition to expanding our existing SiC portfolio and technology, last week we announced a strategic partnership for Magnachip to license our GeneSic Gen 4 and Gen 5 trench-assisted planar technology, spanning 1.2 kV, 2.3 kV, 3.3 kV and high-voltage supported by our supply chain and material ecosystem. The technology will be reported, qualified and internalized in their fab in South Korea. This partnership delivers two primary strategic benefits. First, it enables expanding adoption of our SiC technology across more target markets, expanding Navitas technology beyond the company's current focus; second, and longer-term, this collaboration facilitates the establishment of another foundry source of Navitas SiC wafers, ultimately strengthening our supply chain resilience and supporting our ability to efficiently scale GeneSic solutions. Our deliberate strategic decision to prioritize AI infrastructure over automotive, unlike some of our competitors, has allowed us to bring focused, high-performance products to market faster. I think both GaN and SiC are also seen by customers as a key differentiator and allows us to focus on customer needs, independent of any technology buyers. Additionally, this has allowed us to secure initial design wins with key customers that will continue to support our long-term growth trajectory for years to come. Operational efficiency: With respect to operations, we are making excellent progress on our strategic partnership with GlobalFoundries. The lead part from our pivot to 8-inch GaN are on track for customer sampling and qualification before year-end, and we expect to have initial qualified product in early 2027. This transition will enable U.S.-based GaN manufacturing, supporting national security applications and long-term supply chain resilience. I also want to note that we have secured appropriate buffer capacity at TSMC to ensure a smooth transition for existing customers throughout 2026 and beyond. In addition, we continue to further strengthen and streamline our supply chain, consolidating to fewer, more strategic OSAT partners that are better equipped to support high power at scale. Internally, we are also increasingly leveraging AI tools across designs, operations and other functions to accelerate execution and improve efficiency as we scale. In terms of the fourth pillar, maintaining financial discipline continues to be a fundamental operating principle. Over the past nine months, as we have transformed the organization, we have realized significant efficiency and have held operating expense essentially flat. With our transformation now substantially complete, and with clear visibility into accelerating revenue, we are prudently increasing investment in specific areas, including expanded product development like our JFET or ISO-TO, strengthening customer support for key committed programs and enhancing operational readiness for upcoming ramp of volume shipments. Each of these objectives is directly aligned with our goal of capturing a substantial multiyear growth opportunity for GaN and high-voltage SiC solutions across AI infrastructure markets. Also, we recently raised additional capital to further strengthen our balance sheet and support ongoing strategic execution. More specifically, with $567 million of cash at quarter end, we now have increased flexibility to fund strategic investments in our business, including our Foundry Plus program, capacity expansion and supply reservation agreements with our foundry partners as well as potential strategic inorganic opportunities. That being said, I want to be clear that our immediate and overarching focus remains on driving strong top-line growth together with gradual gross margin expansion through improving mix and scale while maintaining an unwavering path towards becoming a profitable high-power company. In closing, I'm very pleased with our continued progress and growing momentum. Q2 represents another proof point that we are executing on our strategic Navitas transformation. We are delivering on our commitment to achieve quarterly growth; by year-end we will have substantially completed our transition to a high-power company and expect to be back to year-over-year growth. The majority of the growth is being driven by AI infrastructure markets. This is also supporting our expectation for continued double-digit growth for the second half, setting the stage for continued growth momentum into 2027 and beyond. With our substantial cash balance and market leadership, we are well positioned to deliver sustained growth as we capitalize on the opportunity to enable the AI revolution with our differentiated high-power GaN and high-voltage SiC. With that, I'll pass the call to Tonya to review our second quarter financials and the third quarter outlook.
Thank you, Chris. Before I begin, please note, unless otherwise indicated, I will focus my comments on non-GAAP results. A detailed reconciliation of all non-GAAP to GAAP financial measures can be found in our press release published earlier today. Revenue in the second quarter of 2026 was at the high end of guidance, increasing 22% sequentially to $10.5 million. This represents an increase of approximately $1.9 million from the $8.6 million in the first quarter. As Chris highlighted, the double-digit growth was driven by increased traction in high-power markets, which grew more than 50% year-over-year and reflects a notable improvement in our revenue composition as our mobile and low-end consumer business continues to be a smaller portion of overall revenue. We continue to expect this historical business to become insignificant by year-end. As a result of improved product mix and higher quarterly revenue, gross margin expanded by 50 basis points sequentially and 100 basis points year-over-year to 39.5%. Our accelerating shift in overall revenue mix towards higher-value, high-power markets and away from mobile and low-end consumer remains fundamental to our ongoing gross margin expansion strategy. We continue to expect gradual improvement in gross margin throughout the year as we drive top-line growth in high-power markets, coupled with expected return to year-over-year revenue growth. Operating expenses for the second quarter were $15.5 million compared to $15.0 million in the prior quarter and $16.1 million in the same quarter a year ago. Operating expenses for the quarter continued to reflect our commitment to focused and disciplined spending. OpEx was at the high end of our guidance range as we began making incremental investments in the business, particularly in new R&D programs to accelerate growth. Having diligently maintained effectively flat OpEx in recent quarters during our strategic transformation, we are increasingly focused on the resources and investments required to support the longer-term success and sustained growth of the transformed company. As such, we are targeting a prudent increase of approximately $1.0 million to $1.5 million in quarterly OpEx beginning in the third quarter. This equates to a roughly 10% increase yet remains meaningfully lower than our expected top-line growth rate. The incremental OpEx will be allocated to scaling the business, including investments to accelerate new product development, strengthen our engineering and application support for key committed programs and reinforce operational readiness in advance of expected growth in ramping shipments. Loss from operations in the second quarter was $11.4 million compared to a loss of $11.7 million in the prior quarter and $10.6 million in the second quarter of 2025. In Q2, weighted average basic and diluted shares outstanding were approximately 240.7 million, resulting in a Q2 loss per share of $0.04, flat to the $0.04 per share loss in the prior quarter and compared to a loss of $0.05 per share in the year-ago second quarter. Before moving to the balance sheet, I want to briefly provide additional context related to our reported GAAP net loss for the second quarter. Results on a GAAP basis included a noncash charge of $203 million related to the October 2021 business combination earn-out share provisions that were contingent upon stock price depreciation targets. These earn-out shares were deferred merger consideration paid out to stockholders in connection with the company's de-SPAC transaction. This earn-out was fully recognized and settled by the end of Q2 and no further charges related to it are expected. As such, going forward, there will no longer be an associated line item for the change in fair value of this earn-out liability reported under other income or expense on the company's statement of operations. Turning to the balance sheet. Cash and cash equivalents at the end of the second quarter 2026 were $557 million compared to $221 million at the end of the first quarter. The increase in cash and cash equivalents primarily reflects the additional capital raised during the quarter of approximately $373 million at an average stock price of $21.89, which meaningfully strengthened the company's balance sheet and overall financial position. As a reminder, the company continues to have no debt. In addition to bolstering liquidity and working capital flexibility, the significant added capital ensures ample resources for accelerating our continued transformation into a scaled high-power company. This includes strategic investments in support of advancing our Foundry Plus initiative, potential capacity expansion and supply reservation agreements with our U.S.-based foundry partners as well as potential pursuit of selective strategic opportunities. With respect to inventory, we ended the second quarter with $19.5 million of inventory compared to $14.9 million in the prior quarter, reflecting the start of our build of appropriate buffers of TSMC wafers to ensure a smooth transition for our customers. This buffer inventory is also reflected in an approximately $15 million increase in Q2 prepaid expenses and other current assets on the balance sheet until the wafers are received as inventory in future quarters. The sequential $4.6 million increase in Q2 inventory and $15 million prepaid for future anticipated wafer receipts primarily reflects our measured investment to support customers' future anticipated AI data center growth. More broadly, channel and distributor inventory remains at healthy levels. Moving to guidance for the third quarter of 2026. We expect accelerated sequential growth with revenue increasing 28% to $13.5 million, plus or minus $0.5 million. At the midpoint, this also represents a return to year-over-year growth while reflecting a completely different revenue composition as we rapidly shift away from mobile and low-end consumer with growth driven by high-power markets and specifically AI infrastructure. Non-GAAP gross margin is expected to be 39.7%, plus or minus 100 basis points, which at the midpoint represents a 20 basis point increase, reflecting a continued favorable shift in revenue mix toward high-power markets and some additional improved scale. As previously discussed, we are moderately increasing our investment in OpEx going forward to further accelerate our expected future growth. Non-GAAP operating expenses are anticipated to range between $15.5 million to $17.5 million. That concludes our formal remarks. Operator, please open the call for questions.
分析師問答
The call is now open for questions.
Congratulations on the nice third-quarter outlook. Chris, I wanted to start: there's been a lot of noise and chatter in the market that 800V architectures may be delayed, including confirmation, I think, that NVIDIA's Kyber Rack may have been canceled or replaced by something unannounced. Given some of this noise around 800V architectures, can you comment on what you're seeing in terms of adoption of 800V and whether there's any impact on your 2027 revenue outlook as a result of potential architecture shifting?
Thank you, Quinn. This is Chris. We provided in the early comments the steps, and I call those the inflection points. First of all, I want to reiterate that thanks to the fact that we have both GaN and SiC, we are able to grow ahead of the 800V transition. Second, you probably saw that what I call inflection two is the introduction of 800V through the power sidecar, and by the way, that's studied as well for the plus-or-minus 400-volt architectures used for some xPU and ASICs. You can already see a step in usage and a step-up in content in both GaN and SiC. Regarding the third inflection point, which I think is what you're referring to as the so-called native 800V where the DC/DC conversion moves down to the GPU tray: of course, I'm not going to comment on NVIDIA's internal plans. I would refer you to any communications they've made. What I would tell you, though, is I think there is a misconception that 800V is a single binary event. If you look at inflection two, it's actually the start of 800V through the Kyber rack and that will drive more SiC and more GaN content. Even if you look at inflection three, where GaN content really steps up as the DC/DC moves into the compute tray and you have no choice but to use GaN because of the switching frequency, the ramp will happen in steps throughout 2027 and accelerate in 2028. It's not one customer or one event. So the short answer to your question, do we see that as a change in our outlook? The answer is no. Having both GaN and SiC is a strategic advantage for us to capture content, and that's even more true today.
Got it. And then I was wondering if you could talk about applications for your new silicon carbide JFET product line that you discussed on the call? Is that mostly AI infrastructure, energy grid infrastructure? Where are some of the initial applications you'll target with the silicon JFETs?
Thanks for that question. It's actually a very strategic decision that we've made to expand our SAM. As I mentioned, this will add nearly $1 billion of SAM by 2030. This product is very well suited for safety-critical applications. The focus here will be both AI data centers and energy grid infrastructure. You find it in applications like eFuses or ORing, of course solid-state circuit breakers—anything that helps protect as you move to higher power. Protection and power management have become more important. I'll give you an example: I recently met an SST customer and we've been discussing ultra-high voltage applications. Just the fact that we can offer 1.2 kV up to 3.3 kV JFETs increased the SAM we could capture in that SST application by around 40%. So this is a significant expansion of our portfolio and TAM.
Your next question comes from Jon Tanwanteng.
Can you hear me? Sorry, I got dropped earlier. First of all, congrats. I was wondering if you could talk a little bit more about the Magnachip deal. Is that a volume or fixed-fee type of deal? When do you expect it to contribute? Would it be this year or next? And do you expect additional licensing to follow?
Thank you, Jon. We announced the partnership with Magnachip, which goes beyond SiC. First, it's a validation of the technology merits of our GeneSic technology. View this not so much as a licensing play for revenue today but as a strategic move. Number one, it expands our SAM because Magnachip will focus on markets we don't serve, augmenting our ability to reach more customers and markets with GeneSic technology. Number two, it creates an opportunity to partner with Magnachip in the foundry concept. As demand grows for SiC, adding another partner helps secure capacity. We're not creating a competitor; we are creating an extension of Navitas and look forward to a long-term partnership.
Got it. I appreciate that color. Second, could you comment on the Wolfspeed litigation—what's going on there, what do you think your chances might be, and what's at risk?
I understand the interest, but I cannot comment on the specifics of pending litigation. I will provide context based on the public record. Wolfspeed sued us because we stopped buying wafers from them a while back. They also sued two of our employees who previously worked at Wolfspeed, including one who had been RIF'd in their cost reduction several years ago. They filed and failed to obtain a restraining order when third-party recruiters contacted those people for job openings we posted. Now they have sued us for patent infringement in both GaN and SiC. In my opinion, this looks like a campaign of litigation and harassment timed oddly. Two weeks later, Renesas sued us as well. For context, public filings show Renesas would own up to 39% of Wolfspeed. The timing—right before earnings—is curious. We've been in GaN and SiC for more than a decade and the timing of these suits raises questions. As we stated in the 8-K when the Wolfspeed litigation was filed, we respect IP and technology. Navitas is built on decades of innovation from many contributors in both GaN and SiC. Beyond that public record, I won't comment further on pending litigation. I will say we believe in competing in the marketplace and let others draw their own conclusions.
Your next question comes from Madison De Paola from Rosenblatt Securities.
This is Maddie calling on behalf of Kevin Cassidy. Regarding the Magnachip partnership, what other technology licensing opportunities are you considering? And then I have a follow-up.
We licensed GeneSic technology to Magnachip. We're always considering licensing opportunities, but our primary business is serving customers and growing Navitas' top line by executing on the multiyear growth journey in AI infrastructure. We're open to licensing when it complements our strategy and partnerships.
Okay. Great. You mentioned a record book-to-bill and backlog extending beyond 2026. How much of your expected 2027 growth is supported by committed programs versus programs still in qualification?
This is Tonya. We don't break out what percent is committed in 2027 versus what percent relates to backlog at this time. What we can say is that our confidence is driven by the various inflection points Chris described coming on top of each other. It's a compound effect. Having both GaN and SiC allows us to participate across those inflection points. We also have a number of programs moving through qualification into production including design wins and DVTs, EVTs and PVTs, which gives us further confidence.
I'll add two things. Directionally we gave you a sense of how the business will continue beyond Q3 because despite mobile declining faster than we expected, we're growing more than anticipated. We're surprised and pleased by the momentum. This is pre-800V. This is not one program—it's multiple hyperscalers, multiple OEMs and ODMs, multiple power levels of AC/DC PSUs and DC/DC PSUs. That breadth of programs—some SiC, some GaN, some both—gives us confidence. We're not guiding 2027 yet, but the transition to Navitas 2.0 is one quarter ahead of my expectation. The acceleration driven by the sidecar rack and 800V-related initiatives is happening sooner.
Your next question comes from Joe Moore from Morgan Stanley.
In terms of the 800V sidecar, you talked about mid-2027 timing, but it feels like there are sidecars in the market sooner. Can you talk about the progression for Navitas to penetrate that business?
You're absolutely right. When I refer to mid-2027, that's when things really accelerate. We see earlier ramp activity in sidecar racks and plus-or-minus 400-volt architectures that will ramp earlier next year, particularly in AC/DC PSUs and DC/DC PSUs and in some BBUs. Our slide and remarks were meant to show step functions. There will be acceleration in the middle of the year, and we see program ramping associated with the sidecar in the first half of next year as well.
Very helpful. On other markets, you talked about infrastructure being a third of revenue exiting the year. What's happening with performance compute and non-infrastructure electrification?
For high-performance compute, as systems move to higher power architectures, including embedded GPUs, we're seeing rising PSU power levels. For example, we've seen chassis and chargers move to 200-plus to 280 watts for some high-end notebooks, which increases GaN content—roughly $5 to $6 of GaN content in some chargers. We also released a 1,600-watt platform with a customer that powers super high-end gaming platforms. Those applications are not as high volume as mobile, but their GaN content is significant and has helped offset the mobile decline as we transition to AI data center growth. We expect AI infrastructure to be at least one-third of our revenue by Q4.
Your next question comes from Tristan Gerra from Baird.
This is Tyler on for Tristan. Building on the last question, what are your expectations for revenue mix between high-end compute and data center exiting this year?
We don't break down revenue by each high-power market in detail. The four high-power markets are data center infrastructure, AI infrastructure (which combines AI data center and grid), performance computing and industrial electrification. Chris provided context that by the end of the year we expect AI infrastructure to be one-third or greater of total revenue.
Over the last 12 months we've pivoted from being mobile-exposed to being non-mobile-exposed. Mobile will be insignificant by year-end; that transition is one quarter earlier than I expected. We won't give exact line-item splits, but we emphasized that AI infrastructure will be a significant portion and is powering our Q2-to-Q3 and Q3-to-Q4 acceleration.
We've also stated on prior calls and reiterate today that AI infrastructure grew over 50% quarter-over-quarter in both Q1 and Q2, and we expect it to accelerate going forward.
Are you seeing price increases across the industry for your products as well, and does that vary across silicon carbide and GaN?
We've seen price increases in silicon broadly across the industry. I'm not going to get into specific pricing actions with customers. As tensions and supply-demand dynamics evolve, pricing can increase, but our focus remains on getting customers to adopt these new technologies and transition to new architectures. Pricing increases in the core markets are not our primary focus right now.
Your next question comes from Richard Shannon from Craig-Hallum.
When you talk about the four stages of inflection within AI data center, are there any particular stages you feel more or less confident about the share you're going to get? If so, can you characterize where those differences come from—like GaN versus SiC or where you have both?
Stage 1 is happening now and we're excited by the number of programs accelerating replacement of silicon by SiC as density and power increase. For Stage 2 we are in very advanced engagements where it's system-level testing and reliability work for AC/DC PSUs at higher power levels, DC/DC PSUs, and BBUs. Stage 2 includes multiple platforms, multiple hyperscalers and multiple merchant power customers, giving us good confidence to capture share. Stage 3 is the larger native 800V transition where DC/DC moves into compute trays and GaN offers a clear performance advantage. We have longstanding GaN expertise and believe that gives us a leading position for that transition. For Stage 4, the big jump is solid-state transformers enabling grid-to-800V DC delivery, but we expect other applications like BESS, PCS and solar to ramp in 2027 as well. Overall, our advantage is breadth: multiple hyperscalers, multiple merchant power providers, multiple programs, and both SiC and GaN solutions, which gives us confidence across stages rather than dependence on a single event.
Second question for Tonya on OpEx: you provided a wider range this quarter. What's the variability and how should we think about OpEx going forward—seasonality, investment cycles, or should we expect it largely flat?
Great question. Think of OpEx expansion relative to being meaningfully less than our top-line growth. At the midpoint of our Q3 guide, revenue growth is about 28% sequentially. Even at the high end of our OpEx guide, that would be approximately a 10% increase. So OpEx is growing meaningfully less than revenue. You see a bigger step-up Q2 to Q3 because we've held OpEx flat for several quarters during transformation and are now investing in R&D programs like the JFET, ultra-high-voltage SiC (6.5 kV and 10 kV), customer support for data center ramps, and supply-chain readiness. We intentionally kept resources focused on high-power R&D before investing again. Going forward, OpEx will be higher than recent quarters but still significantly lower than revenue growth.
I'll add that our objective of returning to profitability hasn't changed. The OpEx increases are purposeful to accelerate top-line growth while keeping OpEx growth well below revenue growth, keeping us on a path to profitability. With multiple programs and inflection points, and growth arriving sooner than expected, we decided to accelerate targeted investments.
That concludes our question-and-answer session. I will now turn the call back over to Chris Allexandre for the closing remarks.
Thank you, operator, and thank you for your interest and questions. I'll leave you with a few points to take from this call. Number one: the transformation to Navitas 2.0 is essentially nearly complete. By the end of the year we expect to be back to year-over-year growth despite mobile's headwind, with four quarters of sequential double-digit growth and a complete change in revenue mix toward high power. When I took the role a year ago, we talked about transforming Navitas. Today, it is transformed; now the focus is on executing the strategy. The transformation is working. Adding both GaN and SiC has been critical and benefits us across the inflection points. AI infrastructure will be one-third of our revenue by year-end, and the transformation to Navitas 2.0 is who we are now, not who we will become. This came a quarter earlier than I expected, credit to the team. Now it's about execution and operational discipline on a multiyear growth journey with a path to profitability. That's what I want to leave you with. Thank you.
Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.