ON Semiconductor (NASDAQ:ON) announced a collaboration with Nvidia (NASDAQ:NVDA) on Tuesday to accelerate the transition to 800 Volt Direct Current (VDC) power architectures, a critical advancement for improving efficiency, density, and sustainability in next-generation AI data centers.
On Semiconductor stock gained after the update.
To support this shift, On Semiconductor delivers high-efficiency, high-density power conversion across every stage of the power journey—from high-voltage AC/DC conversion at substations to precise voltage regulation at the processor level—enabling AI data centers to manage massive power loads with minimal loss.
Also Read: What’s Fueling ON Semiconductor’s Recent Stock Surge?
By leveraging decades of expertise in silicon and silicon carbide (SiC) technologies, On Semiconductor offers advanced solutions for solid-state transformers, power supply units, and core 800 VDC distribution.
On Semiconductor stock is down 7% year-to-date despite gaining 51% in the last three months.
A lot has been brewing in the semiconductor space lately, which has a very close-knit ecosystem. The United States has temporarily paused technology export restrictions to China to avoid disrupting trade talks and support President Donald Trump’s efforts to secure a meeting with Chinese President Xi Jinping later this year, the Financial Times reported Monday. This shift may benefit semiconductor companies, offering a potential boost as trade discussions kick off Monday in Stockholm between U.S. and Chinese officials. The policy change comes shortly after Nvidia announced it would resume H20 AI chip sales to China, reversing a Trump-era export ban imposed in April due to national security concerns.
Last week, the White House unveiled “Winning the AI Race: America’s AI Action Plan,” fulfilling President Trump’s January order to clear barriers to U.S. AI leadership. The plan outlines 90+ federal actions focused on innovation, infrastructure, and global AI leadership.
Semiconductor stocks rebounded Wednesday after falling on reports of delays in the $500 billion Stargate project.
The administration will fast-track data center and chip plant permits, launch workforce development programs, streamline regulations, and require AI contracts to ensure models remain objective and unbiased.
ON Price Action: ON Semiconductor shares were up 2.47% at $60.11 at the time of publication on Tuesday, according to Benzinga Pro data.
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