Navitas Semiconductor is quietly making waves in the AI industry with its next-generation power solutions. The company’s GaN and SiC power semiconductors offer significant efficiency improvements over traditional silicon chips. Navitas recently unveiled its innovative “IntelliWeave” digital control technique, which enables AI data center power supplies to achieve over 99% efficiency.
This technology could be a game changer as data centers seek to minimize power consumption while meeting the intense computing demands of AI applications. While still unprofitable, Navitas is seeing strong revenue growth. In the second quarter of 2024, the company reported revenue of $20.5 million, up 13% year over year.
With a growing pipeline of over 60 data center customer projects and the recent launch of new products tailored for AI applications, Navitas is well-positioned to capitalize on the surge in AI infrastructure spending. Applied Digital rapidly expands its high-performance computing infrastructure to meet the booming demand for AI processing power. The company designs builds and operates next-generation data centers optimized for AI and machine learning applications.
Applied Digital’s cloud services business is growing quickly, with two new GPU clusters added in the most recent quarter. As a result, the company’s cloud services business segment generated $25.9 million in revenue during this period. The company is also progressing on its first 100 MW high-performance computing facility in North Dakota, with plans to expand its total capacity to 400 MW.
Applied Digital is already in the design phase for two additional buildings at this location, contributing to the planned 400 MW total capacity and further bolstering its ability to meet the growing demand for AI computing resources. A recent $160 million private placement underscores Applied Digital’s potential in the AI infrastructure space.
Navitas’ GaN advances power efficiency
While the company reported a net loss in its fiscal Q1 2025, which ended Aug. 31, revenue surged 67% year over year to $60.7 million, driven by growth in its cloud services segment. Iris Energy is leveraging its expertise in mining infrastructure to capitalize on the growing demand for AI computing power.
The company has expanded into AI cloud services, generating $3.1 million in revenue in its fiscal year 2024 from multiple customers across reserved and on-demand markets. Iris Energy’s transition to AI is still in its early stages. Still, the company has significant potential to repurpose its extensive data center infrastructure and renewable energy resources for AI applications. The company is currently evaluating AI data center opportunities for its 1.4 GW West Texas site through a process managed by Morgan Stanley.
Despite facing challenges in the volatile Bitcoin mining market, Iris Energy reported improved financial results for the fiscal year 2024, which ended June 30. The company achieved earnings before interest, taxes, depreciation, and amortization of $19.6 million, compared to a loss of $123.2 million in the previous year. Bitcoin mining revenue reached a record $184.1 million, up from $75.5 million in fiscal year 2023.
While these companies offer intriguing exposure to the AI boom, they come with significant risks. All three are currently unprofitable and face intense competition in their respective markets. Their success depends heavily on the continued growth and adoption of AI technologies.
However, for investors willing to take on higher risk in search of potential AI winners, Navitas Semiconductor, Applied Digital, and Iris Energy offer unique angles on the AI revolution that are flying under most investors’ radars. As the AI industry evolves, these lesser-known players could emerge as significant beneficiaries of the ongoing technological transformation.
