Navitas and Arm Compete in AI Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Source: Fool
- Navitas Strategic Shift: Navitas Semiconductor is pivoting from consumer electronics to higher-margin AI data centers and electric vehicle markets, with Q4 2025 revenue expected to drop to $7 million from $22 million in Q3 2024; however, the company believes partnerships with hyperscalers like Nvidia will drive future revenue growth.
- Market Outlook Analysis: Analysts project Navitas could reach $130 million in revenue by 2028, but the success of this pivot is uncertain due to competition from larger players, which could significantly impact its long-term market position.
- Arm's Market Advantage: Arm Holdings commands a 99% market share in mobile CPU design, with AI data center licensing revenue accounting for over half of its total revenue by 2025, indicating strong growth potential in the AI sector.
- Future Growth Expectations: Arm anticipates its data center business will surpass mobile in the coming years, with analysts forecasting a 50% compound annual growth rate for this segment through 2030, although its high valuation may lead to short-term stock price fluctuations.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 114.380
Low
120.00
Averages
160.58
High
201.00
Current: 114.380
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is engaged in operating a global computing platform. It architects, develops, and licenses high-performance and energy-efficient Arm compute platforms. The Company’s principal operations and activities are the licensing, marketing, research and development of central processing unit (CPU) design intellectual property (IP), graphics processors, system IP, market optimized platform IP, and associated software, tools and other related services. Its complementary products include GPU and NPU accelerators, interconnect, and others. Its primary product offerings are CPU products that address diverse performance, power, and cost requirements. It offers a family of GPU and NPU products providing efficient computing acceleration and an optimal visual experience across a wide range of devices. Its CPU, GPU, and System IP products integrated into a foundational compute platform optimized for a specific end market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Service Sector Expansion: The US ISM services index unexpectedly rose to 56.1 in February, significantly better than the anticipated 53.5, reflecting the fastest pace of expansion in 3.5 years and further supporting the stock market rally.
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