- Navitas Semiconductor recently expanded its distribution agreement with Avnet, making Avnet a globally franchised partner to supply technical and commercial support for Navitas’ GaN and SiC power devices across AI data centers, renewable energy, grid infrastructure, and industrial markets.
- This deeper relationship broadens Avnet’s exposure to higher-complexity, wide bandgap semiconductors, potentially reinforcing its role in fast-growing, electronics-rich end markets that prize design expertise and global logistics.
- We’ll now examine how Avnet’s expanded role in distributing Navitas’ GaN and SiC technologies could reshape the company’s broader investment narrative.
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Avnet Investment Narrative Recap
To own Avnet, you need to believe its global distribution platform can translate complex semiconductor content into steady cash generation, despite tight margins and regional swings in demand. The expanded Navitas agreement modestly supports the near term catalyst of stabilizing profitability, but does not yet change the central risk: persistent margin pressure as mix shifts toward lower margin regions and products.
The most relevant recent update is Avnet’s Q1 FY26 result, where revenues improved but gross and operating margins stayed under pressure, with little sign of operating leverage. Seen alongside the Navitas expansion, it underlines that even higher value technologies may not quickly offset ongoing mix and pricing headwinds in Avnet’s core distribution engine.
Yet beneath Avnet’s broader growth story, investors should be aware of how sustained margin compression could...
Read the full narrative on Avnet (it's free!)
Avnet's narrative projects $25.5 billion revenue and $680.5 million earnings by 2028. This requires 4.8% yearly revenue growth and about a $440 million earnings increase from $240.2 million today.
Uncover how Avnet's forecasts yield a $53.00 fair value, a 6% upside to its current price.
Exploring Other Perspectives
Four fair value estimates from the Simply Wall St Community span a wide range, from about US$10 per share up to US$64, showing how far opinions can stretch. As you weigh those viewpoints against the risk of continued margin pressure in Avnet’s core business, it becomes even more important to compare several different takes on the company’s prospects.
Explore 4 other fair value estimates on Avnet - why the stock might be worth as much as 28% more than the current price!
Build Your Own Avnet Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Avnet research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
- Our free Avnet research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avnet's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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