Intel vs. Navitas: Which Semiconductor Stock Is a Better Buy in 2026?

The chip industry is splitting between traditional giants and niche disruptors. Choosing between Intel (NASDAQ:INTC) and Navitas Semiconductor (NASDAQ:NVTS) depends on whether you prefer turnaround potential or specialty growth.

Intel is a legacy titan reinventing itself as a foundry, while Navitas focuses on next-generation power materials like gallium nitride. Investors compare them to decide whether to bet on a massive manufacturing reboot or the adoption of more efficient power chips in AI and electric vehicles.

The case for Intel

Intel designs and manufactures products within the semiconductor stocks category for data centers, cloud, and edge markets. The company is pivoting toward its IDM 2.0 strategy, which involves acting as a foundry to manufacture chips for other designers. This transformation requires massive capital investment to compete with established global manufacturers.

In its 2025 fiscal year (FY), revenue reached $52.9 billion, representing a slight decrease of 0.5% compared to the previous year. The company recorded a net loss of $267.0 million for the period. This resulted in a net margin of negative 0.5%, indicating the company is currently operating near its break-even point.

As of its December 2025 balance sheet, the debt-to-equity ratio is 0.4x. This means total debt is about 40% of shareholder equity, while the current ratio of 2.0x indicates it has twice as many short-term assets as liabilities. Free cash flow was negative $4.9 billion in FY 2025. Note that stock-based compensation (SBC) represented 25.1% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

The case for Navitas Semiconductor

Navitas Semiconductor focuses on next-generation materials like gallium nitride and silicon carbide for power management. The company is executing its Navitas 2.0 strategy, forming key partnerships with Nvidia to develop power architectures for AI data centers. It also maintains strategic manufacturing agreements with companies like GlobalFoundries to support its specialized production needs.

For FY 2025, the company generated revenue of $45.9 million, a decline of 44.9% from the prior fiscal year. This resulted in a net loss of $117.0 million. The net margin was negative 254.7%, reflecting high spending relative to the current scale of the business.

According to its December 2025 balance sheet, the debt-to-equity ratio is zero. This indicates the company has virtually no debt relative to shareholder equity. The current ratio is 5.0x, and free cash flow was negative $44.4 million for FY 2025.

Risk profile comparison

Intel faces intense competition from Advanced Micro Devices in the personal computer and server markets, where market share shifts can impact revenue. The company also risks falling behind Taiwan Semiconductor Manufacturing Company in manufacturing technology. Additionally, any delays in building new fabrication plants could lead to significant capital losses.

Navitas depends on third-party foundries like GlobalFoundries, making it vulnerable to capacity constraints. The scheduled exit of Taiwan Semiconductor Manufacturing Company from GaN production in 2027 also poses a supply chain risk. The company must win contracts against established incumbents like Infineon Technologies as it pivots toward high-power markets.

Valuation comparison

Based on future earnings estimates, Navitas has a lower Forward P/E, while Intel trades at a significantly lower P/S ratio.

Sector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Semiconductor stocks have been hot in recent years thanks to the rise of artificial intelligence. The expected growth in the AI sector led Intel and Navitas to focus efforts in that area. Both have declared a 2.0 plan that is supposed to get their businesses to the next level.

Setting the AI hype aside, these companies have a lot to prove. Intel initially struggled with the arrival of AI, leading to the replacement of its CEO. With Lip-Bu Tan now in charge, the company is showing signs of a turnaround. In its fiscal first quarter ended March 28, sales increased 7% year-over-year to $13.6 billion. Even better, Intel forecasted revenue growth to accelerate in Q2 with sales expected to be between $13.8 billion and $14.8 billion, up from $12.9 billion in the prior year.

Meanwhile, Navitas decided to go all-in on the AI trend. In 2025, it abandoned its business selling mobile and consumer-related components to the Chinese market, which accounted for 60% of revenue in 2024, to focus on the AI market. That’s why its 2025 sales fell 45% year over year. The company’s management predicts revenue will pick up over 2026.

In evaluating these two companies, I would invest in Intel over Navitas. Although both are at key inflection points in their businesses, Intel is showing that its efforts are growing revenue. That’s not the case for Navitas, so any investment in the company is risky until it proves sales can recover.

Robert Izquierdo has positions in Advanced Micro Devices, GlobalFoundries, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, GlobalFoundries, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.