Onsemi shares rise 1.8%; company partners with Nvidia to advance 800 VDC power for next-generation AI data centers

Onsemi shares rise 1.8%; company partners with Nvidia to advance 800 VDC power for next-generation AI data centers

Title: Onsemi Shares Rise 1.8%; Company Partners with Nvidia to Advance 800 VDC Power for Next-Generation AI Data Centers

Onsemi (NASDAQ:ON) shares rose 1.8% in premarket trading on Tuesday following the company's announcement of a strategic partnership with Nvidia (NASDAQ:NVDA) aimed at advancing 800 Volt Direct Current (VDC) power solutions for future AI data centers. The collaboration focuses on building a next-generation power distribution system capable of delivering large amounts of energy efficiently, with minimal losses during voltage conversion.

At the heart of this partnership is Onsemi's intelligent power portfolio, which plays a critical role in enabling the next generation of AI data centers. The company's advanced power solutions, including solid state transformers, power supply units, 800 VDC distribution, and core power delivery, supported by intelligent monitoring and control, are key to this endeavor. This collaboration underscores Onsemi's commitment to high-efficiency, high-density power conversion across every stage of the power journey.

The partnership is a significant step forward for Onsemi, which has seen strong demand for its silicon carbide chips used in electric vehicles. In the first quarter, demand for these chips was supported by rising EV sales in China and Europe, despite concerns over a potential 25% U.S. tariff on auto imports that could push prices higher. In May, the company issued a second-quarter revenue forecast that topped analyst expectations, citing continued strong demand for its EV-related chips.

The collaboration with Nvidia also positions Onsemi to capitalize on the growing demand for advanced power solutions in AI data centers. As AI and machine learning technologies continue to evolve, the need for efficient and reliable power distribution becomes increasingly critical. This partnership aims to address these demands by developing cutting-edge power solutions that can support the high-performance computing requirements of AI data centers.

Investors should closely monitor this development, as it could have significant implications for the broader AI chip ecosystem. The rise of AI and autonomous systems is driving demand for localized, agile production of high-performance chips. This partnership reflects a broader trend toward regionalized, diversified supply chains, which could benefit other players in the AI chip market.

For Onsemi, this partnership represents an opportunity to expand its market reach and secure a high-profile client in the AI data center space. The company's expertise in power solutions, combined with Nvidia's leadership in AI hardware, could lead to innovative and efficient power distribution systems that meet the demands of next-generation AI data centers.

References
[1] https://www.ainvest.com/news/tesla-strategic-semiconductor-shift-implications-tsmc-intel-ai-chip-ecosystem-2507/
[2] https://seekingalpha.com/news/4473131-onsemi-partners-with-nvidia-to-accelerate-transition-to-800-vdc-power-solutions
[3] https://finance.yahoo.com/news/onsemi-stock-rises-nvidia-collaboration-122422564.html