Added 2 new stocks today!
Both very high risk, but very high reward as well.
Thesis & investment ideas:
AI data centers are hitting a power wall. $NVDA racks now pull so much electricity that the old low-voltage power delivery system literally cannot keep up anymore.
The industry fix is moving the whole architecture to 800V DC power delivery. Nvidia is pushing Korean infrastructure companies to design around this right now!
Sounds very similar to optics! A boring, overlooked part of the stack suddenly becomes the bottleneck, and the few companies with the right tech get repriced violently.
Naturally I went looking for the purest, high leverage stocks to invest in this idea.
Many names that come up when people say "power semis" are either too diversified for me or too big (I want a 3-10x).
After going through every player I could find, I think these two names are truly pure plays on 800V AI data center power: $NVTS Navitas and $VICR Vicor.
If you follow me you know that I usually try to pick the purest and clearest winner I can find, for example for AI factories I only own $NBIS and not a basket.
But what I find interesting is that these two play at different layers of the same thesis, which is why I picked both.
Navitas
$NVTS plays the component layer. They make the actual GaN power switches that enable 800V architectures to even work in the first place. Their tech is legitimately tied for best-in-class in the high-voltage GaN market with integrated drivers. Revenue is tiny relative to market cap today, which is exactly why the leverage is so high. The company is essentially all option value on the 800V buildout, and every design win will move the stock violently.
Vicor
plays the architecture layer. They make the power modules and bus converters that sit around those switches. What I like here is that the thesis is already showing up in the numbers, not just in the narrative. Strong book-to-bill, big backlog growth, and a lead hyperscaler customer ramping production. The caveat is that valuation is stretched and the easy money is priced in. But if 800V DC adoption accelerates, Vicor is structurally positioned with IP and architecture wins that a lot of incumbents cannot match.
Why these two together: I want maximum leveraged pure play exposure to this thesis.
Components + architecture. I like it.
Both stocks ran aggressively already and look horrible if you look at the financials. This story is all about insane growth and profits in the future. If the idea is on point and they execute, upside is huge. If things go wrong, downside is also big!
This post is not financial advice, as always please do your own research!
P.S. other ways you could play this:
$POWI – High-voltage (1700V) GaN switchers for the 800V front-end.
$AOSL – Smart Power Stages (SPS) integrated directly onto GPU modules.
$BELFB – 800V rack-level power shelves and high-density supplies.
$VECO – They make the machines that manufacture GaN wafers.
