Navitas Semiconductor (NVTS) partnered with NVIDIA to develop a 24-kW power delivery board that converts 800V DC to 12V DC in a single stage, eliminating intermediate conversion steps. This advancement supports NVTS' 800V strategy as AI data centers demand more efficient power solutions. However, NVTS faces strong competition from ON Semiconductor and STMicroelectronics, and trades at a significantly elevated valuation with a Zacks Rank #3 (Hold) rating.

The article highlights four high-risk, high-reward stocks: Agios Pharmaceuticals awaiting FDA approval for mitapivat to treat sickle cell disease; Navitas Semiconductor pivoting toward AI data centers and high-power chips; Joby Aviation developing eVTOL transportation services with autonomous capabilities; and Viking Therapeutics developing obesity drug VK2735 with potential in a multi-billion dollar market. All require patience but offer significant upside if their respective catalysts materialize.

The article highlights two computer and technology stocks with positive Earnings Surprise Predictions (ESP): ON Semiconductor Corp. (ON) with a +5.20% ESP and Affirm Holdings (AFRM) with a +11.03% ESP. Both stocks have Zacks Rank #3 (Hold) ratings and are expected to beat their upcoming quarterly earnings estimates, with ON reporting on November 2, 2026, and AFRM on November 5, 2026.

ON Semiconductor Corp. (ON) closed at $76.00, down 1.97%, underperforming the broader market. The company is expected to report EPS of $0.87 (38.1% growth YoY) and revenue of $1.7 billion (9.66% growth YoY). With a Zacks Rank of #3 (Hold) and a Forward P/E of 24.24 (below industry average of 39.22), the stock trades at a valuation discount despite recent downward EPS estimate revisions of 0.84% over the past 30 days.

ON Semiconductor, despite a 43% gain in 2026, remains a strong value play due to its exposure to electric vehicles, industrial applications, and fast-growing AI data center infrastructure. Management projects 12-14% revenue CAGR and 30% operating income CAGR through 2030, with the pending Synaptics acquisition expected to strengthen its position in the physical AI market.

Navitas Semiconductor completed its acquisition of Claros, adding intelligent voltage regulator (IVR) technology to its GaN and high-voltage SiC portfolio. The deal strengthens Navitas' grid-to-xPU power delivery capabilities for AI infrastructure, addressing the final stage of power delivery to processors. However, NVTS trades at a significantly elevated valuation of 48.71X forward P/S versus the industry average of 5.26X, and faces intense competition from ON Semiconductor and STMicroelectronics in the AI data center power market.

ON Semiconductor has gained significant investor attention with shares returning +21.4% over the past month. The company shows strong earnings growth expectations (+36.2% for current fiscal year and +40% for next year) and has consistently beaten consensus estimates. However, the stock carries a Zacks Rank #3 (Hold) rating and trades at a premium valuation (Grade D) compared to peers, suggesting it may perform in line with the broader market in the near term.

The global Power IC market was valued at US$ 11.66 billion in 2025 and is projected to reach US$ 21.58 billion by 2034, growing at a CAGR of 7.4%. Growth is driven by rising demand for efficient power management in consumer electronics, automotive systems, industrial automation, renewable energy, and data centers. Asia Pacific dominates the market, with North America and Europe generating growth through investments in automotive electronics, data centers, and renewable energy systems. Wide bandgap semiconductor technologies like silicon carbide and gallium nitride are enabling next-generation applications.

The global Power Discrete market is valued at US$ 14.30 billion in 2025 and is projected to reach US$ 24.46 billion by 2034, growing at a CAGR of 6.4%. Growth is driven by increasing demand for energy-efficient power management technologies across consumer electronics, automotive systems, industrial equipment, renewable energy, and data centers. Asia Pacific dominates the market, followed by North America and Europe. Key trends include the transition to SiC and GaN semiconductor technologies enabling higher efficiency and performance in EVs, 5G devices, and industrial automation.

ON Semiconductor Corp. (ON) closed at $85.93, up 1.23%, outperforming the S&P 500. The stock has gained 14.13% over the past month. Analysts project Q3 earnings of $0.87 per share (38.1% YoY growth) and annual earnings of $3.2 per share (36.17% growth). The company holds a Zacks Rank #3 (Hold) with a Forward P/E of 26.54, trading at a discount to its industry average of 36.84. The Semiconductor - Analog and Mixed industry ranks in the top 19% of all industries.

ON Semiconductor Corp. (ON) has demonstrated a strong streak of beating earnings estimates, surpassing consensus by an average of 3.85% over the last two quarters. With a positive Earnings ESP of +5.20% and a Zacks Rank #3 (Hold), the company appears well-positioned for another earnings beat in its upcoming report. The combination of positive Earnings ESP and solid Zacks Rank historically produces positive surprises nearly 70% of the time.

Texas Instruments is approaching the conclusion of its six-year elevated capital expenditure cycle for 300mm wafer fabs, positioning the company for significant margin expansion. Q2'26 results showed gross margins rising 350 basis points to 61.4% with revenues up 23% YoY, while the company expects capex to decline from $4.55B in 2025 to $2-3B in 2026. The 300mm production offers 40% lower per-chip costs compared to 200mm wafers, providing structural margin benefits as utilization improves.