Onsemi stock rises on Nvidia collaboration for AI power solutions

Published 29/07/2025, 12:58
© Reuters

Investing.com -- ON Semiconductor (NASDAQ:ON) shares jumped more than 4% in premarket trading Tuesday after the company unveiled a new 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.

"Onsemi’s intelligent power portfolio plays a critical role in enabling the next generation of AI data centers by delivering high-efficiency, high-density power conversion across every stage of the power journey," the company said in the announcement. 

The chipmaker offers advanced power solutions across solid state transformers, power supply units, 800 VDC distribution, and core power delivery, supported by intelligent monitoring and control.

Onsemi is best known as the handful of suppliers providing silicon carbide chips that help increase the driving range of 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.

 

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