• In December 2025, Navitas Semiconductor announced it had expanded and consolidated its global distribution agreement with Avnet, deepening their collaboration across GaN and SiC high-power semiconductor devices to serve AI data centers, renewables, grid infrastructure, and industrial electrification.
• This move strengthens Avnet’s position as a key channel partner in high-growth power and computing markets, while giving Navitas a more unified, technically supported global route to customers.
• Next, we’ll examine how Avnet’s expanded role in supplying GaN and SiC power devices could reshape its broader investment narrative.

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Avnet Investment Narrative Recap

To own Avnet, you need to believe its global distribution scale and technical support can offset margin pressure and regional volatility as electronics demand evolves. The expanded Navitas agreement supports that thesis by deepening Avnet’s role in higher-value GaN and SiC power devices, but it does not fundamentally change the near term focus on stabilizing gross margins and managing elevated inventories.

Among recent announcements, the ongoing share repurchase program, with US$886 million spent to retire 18,525,241 shares under the 2022 plan, stands out here. Pairing buybacks and a growing dividend with partnerships like Navitas suggests Avnet is trying to balance returning capital with investing in higher complexity, design rich segments that could help counter margin compression and regional demand imbalances over time.

But while these moves are encouraging, investors should also be aware of the risk that sustained gross margin pressure could...

Avnet's narrative projects $25.5 billion revenue and $680.5 million earnings by 2028. This requires 4.8% yearly revenue growth and a $440.3 million earnings increase from $240.2 million today.

Uncover how Avnet's forecasts yield a $53.00 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community fair value estimates for Avnet span about US$10 to US$64, showing how far apart individual views can be. As you weigh those, remember that ongoing gross margin compression and regional sales mix shifts could matter as much as any growth story, so it makes sense to compare several of these perspectives before deciding how Avnet might fit into your portfolio.

Explore 4 other fair value estimates on Avnet - why the stock might be worth as much as 30% 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.