Navitas Semiconductor is seen benefiting from the redesign of AI data center power systems toward 800V architectures.

Baird has reiterated its "outperform" rating on Navitas Semiconductor (NASDAQ: NVTS), the power chipmaker, arguing that its latest Nvidia collaboration positions it to benefit from a redesign of power systems in artificial intelligence data centers.

Navitas announced a 24-kilowatt power delivery board that converts 800 volts of direct current into 12 volts, targeting 97% efficiency at full load. The board uses the company's gallium nitride (GaN) technology and will feature on Nvidia's MGX partner wall at the Open Compute Project conference this week.

The new design builds on Navitas's previously announced 20kW board and delivers power density exceeding 2,000 watts per cubic inch. Its 400mm by 60mm form factor allows integration directly onto the computing motherboard, bringing power conversion closer to graphics processing units (GPUs).

Baird sees the shift toward 800V power architectures as a significant growth opportunity, with hyperscale data center operators adopting designs intended to support increasingly demanding AI workloads. The broker expects power semiconductor content in power supply units to increase fivefold as these architectures develop, creating opportunities for gallium nitride in direct-current conversion and silicon carbide in alternating-current conversion.

Navitas's single-stage design converts 800V directly to 12V, removing intermediate conversion steps and potentially reducing energy losses, board space and system complexity. The board uses 16 650V gallium nitride field-effect transistors in the company's latest dual-cooled package.

Baird views the transition as a structural growth opportunity because next-generation AI systems require higher power density and greater efficiency amid constraints on electricity supply. The broker considers Navitas well positioned to benefit as data center operators redesign power delivery systems, describing the shares as an attractive entry point for investors seeking exposure to the emerging architecture.