Shares of Navitas Semiconductor Corp (NVTS) skyrocketed 117.28% in pre-market trading on Thursday, following the announcement of a game-changing collaboration with tech giant Nvidia. The partnership aims to develop an advanced 800V high-voltage direct current (HVDC) architecture for AI data centers, leveraging Navitas' cutting-edge GaNFast gallium nitride and GeneSiC silicon carbide technologies.
The collaboration is set to revolutionize power distribution in AI data centers by overcoming the limitations of current 54V in-rack systems, which struggle to meet power demands exceeding 200 kilowatts. Nvidia's proposed shift to 800V HVDC from the traditional 13.8 kV AC grid power is expected to significantly enhance energy efficiency, reducing copper usage by up to 45% for a 1MW rack compared to conventional systems.
Gene Sheridan, CEO and co-founder of Navitas, expressed pride in the company's selection by Nvidia, emphasizing the importance of Navitas' technology in supporting Nvidia's infrastructure from the grid to the GPU. The partnership is anticipated to not only improve power efficiency by up to 5% but also substantially reduce maintenance and cooling costs, with a projected 70% decrease in power supply unit failures. This collaboration marks a significant milestone for Navitas, potentially transforming its market position and future prospects in the rapidly growing AI infrastructure sector.
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