Better Artificial Intelligence Stock: Navitas Semiconductor vs. Astera Labs

2 hours ago 2

Robert Izquierdo, The Motley Fool

Mon, December 29, 2025 astatine 10:05 AM CST 5 min read

Both Navitas Semiconductor and Astera Labs supply cardinal components for AI infrastructure.
Navitas is undergoing a large displacement successful its business, causing Q3 income to driblet 53% from a twelvemonth ago.
By contrast, the popularity of Astera Labs products led to grounds Q3 gross of $230.6 million.
10 stocks we similar amended than Navitas Semiconductor ›

Wall Street analysts astatine Bank of America person told clients the artificial quality (AI) manufacture remains "the spot to be" successful 2026. Two blistery stocks successful the assemblage see Navitas Semiconductor (NASDAQ: NVTS) and Astera Labs (NASDAQ: ALAB).

Both supply cardinal semiconductor components to the information centers that location AI systems. This helped Astera shares soar astir 30% successful 2025 done Dec. 23, portion Navitas banal roseate implicit 100% successful that time.

Global information halfway capableness is projected to much than triple by 2030 compared to 2025, driven by escalating request for artificial intelligence. The concern provides Navitas and Astera with years of imaginable concern growth.

But is 1 a amended AI banal to put successful than the other? Let's dive into some companies to find out.

A glowing machine spot with the letters "AI" written connected it sits connected apical of circuitry.

Navitas constructs semiconductors utilized for powerfulness conversion and charging. Its competitory vantage is that its products marque highly businesslike usage of electricity, a cardinal diagnostic fixed that immoderate information centers tin beryllium the size of cities.

These strengths resulted successful Nvidia choosing to spouse with Navitas. Nvidia recognizes that information centers contiguous aren't designed to enactment AI's powerfulness demands, which is wherefore it's moving with Navitas and different partners to acceptable up the infrastructure needed for artificial intelligence.

This concern has propelled Navitas' stock terms but not its sales. The company's Q3 gross plunged from $21.7 cardinal successful 2024 to $10.1 cardinal successful 2025. The 53% illness successful Q3 income was the effect of a determination to permission the mobile and user markets successful China, which accounted for 60% of Navitas gross successful 2024.

Management decided to exit these markets to enactment resources toward what CEO Chris Allexandre calls "high-power, high-growth markets specified arsenic AI information centers." The institution expects Q4 gross to proceed spiraling downward to astir $7 million. That's a fraction of the $18 cardinal generated successful the anterior year.

Astera Labs specializes successful connectivity solutions that let AI servers to pass efficiently with each other. In addition, it provides bundle tools for customers to negociate analyzable AI infrastructure with ease.