Microchip Collaboration Adds Validation but Not Revenue for Navitas' AI Power Pivot

What happened

Navitas and Microchip announced a joint 800V reference design for AI data center power, adding another partner to its ecosystem push. This follows earlier Nvidia showcase activity but delivers no immediate revenue, as Navitas' Q2 2026 revenue was only $10.5 million and management has stated design wins are not orders or backlog. The collaboration may improve credibility for the 800V DC OCP standard, but adoption timelines remain in 2027 per Nvidia's roadmap. Meanwhile, the stock trades at a $2.66 billion market cap on future AI revenue that has not yet appeared in filings, and litigation from Wolfspeed and Renesas adds legal overhang. Overall, the announcement reinforces technical positioning but does not change the fundamental gap between narrative and financials.

Implication

For investors, the Microchip collaboration adds a second major partner and improves the ecosystem storyline, but it does not address the core issues: minimal revenue, heavy losses, and litigation. The stock likely sees a modest positive reaction as narrative strengthens, but without booked AI production revenue or a beat in Q3/Q4, the valuation remains stretched. Any spike toward $14 should be viewed as a trim opportunity, while a pullback toward $8 would improve risk-reward. The collaboration could accelerate qualification if Microchip's digital control and security are adopted, but that is not yet evidenced. Until Navitas reports measurable AI revenue, the stock remains a high-risk momentum play.

Thesis delta

The thesis remains unchanged: we maintain a WAIT rating. The Microchip collaboration adds another partner and strengthens the AI data center power narrative, but it does not convert design activity into booked revenue. The fundamental issues of low revenue, large losses, litigation, and dilution persist, so the attractive entry remains $8 or lower, with a trim above $14.