Mentioned:
Nvidia is making a bet on a new way to power their data centres. And they’re turning to a publicly traded company to do it.
What’s happening:
- Navitas Semiconductor (NASDAQ: NVTS) and Nvidia (NASDAQ: NVDA) have formed a new partnership focused on developing advanced high voltage direct current power architecture for Nvidia’s data centres
Why it matters:
- This is the first time that Navitas Semiconductor has ever landed a deal with Nvidia for leveraging their proprietary chip technology
Going deeper:
- Navitas will provide advanced power chips made from gallium nitride and silicon carbide to deliver significantly more high voltage power to Nvidia’s data centres that require less energy and also reduce cooling costs for Nvidia’s rack scale systems that power ultra high performance GPUs
- Navitas Semiconductor’s chip technology also requires roughly 45% less copper as an input, which both reduces overall costs as well as total weight
Market reaction:
- Shares of Navitas Semiconductor surged more than +125% following the announcement
