Core Viewpoint - The monetization of AI is accelerating, with strong capital expenditure from cloud vendors, leading to rapid growth in global data center installations [1] Group 1: AI Monetization and Capital Expenditure - AI monetization is gaining momentum, driven by robust capital spending from cloud service providers [1] - The global data center's new installed capacity is expected to maintain a rapid growth trend [1] Group 2: Power Distribution Technologies - The overall power density of intelligent computing centers (AIDC) is accelerating [1] - High voltage direct current (HVDC) distribution solutions are becoming a prevailing trend [1] - Solid-state transformers (SST) represent the latest technological route under high voltage direct current distribution, offering advantages in conversion efficiency, construction period, footprint, and renewable energy integration compared to HVDC and Panama power solutions [1] Group 3: Market Opportunities and Recommendations - SST distribution solutions are anticipated to gradually penetrate the market as subsequent NV Rubin Ultra chips and NVL576 enter mass production [1] - Companies are advised to select targets based on product maturity, technological synergies, and customer base [1]

Core Viewpoint - Onsemi Semiconductor (ON.US) has partnered with Nvidia (NVDA.US) to accelerate the development of 800V DC power solutions for next-generation AI data centers, leading to a significant increase in Onsemi's stock price by over 6% [2] Group 1: Industry Trends - The demand for power in global AI data centers is rapidly increasing, with projections indicating that by 2030, global data center electricity demand will more than double to approximately 945 TWh, driven primarily by AI applications [2] - AI data center power consumption is shifting from traditional levels of 20-30 kW per rack to levels of 500 kW and even 1 MW, necessitating a transition to 800V high-voltage direct current (HVDC) architecture [3][4] - The current mainstream power systems in large-scale cloud computing and AI training clusters are still based on 48V DC or 380/400V DC, with 800V being in the early pilot stage [4] Group 2: Company Developments - Onsemi Semiconductor's smart power solutions are positioned as critical components for powering next-generation AI data centers, achieving high efficiency and power density in energy conversion [2] - Nvidia is expected to see new revenue streams from the 800V DC high-voltage distribution, which will serve as the backbone for future megawatt-level AI data centers, enhancing its growth channels beyond AI GPUs and high-performance networking solutions [5] - Onsemi is set to provide 800V-level SiC MOSFETs, solid-state transformers, and high-density DC-DC modules, strengthening its competitive edge in the high-voltage SiC power market against rivals like Infineon [5]

Core Viewpoint - ON Semiconductor has partnered with NVIDIA to develop an 800V DC power solution for next-generation AI data centers, which is expected to significantly enhance power efficiency and capacity in response to the growing demand for AI applications [1][2]. Group 1: Market Demand and Trends - The global power demand for AI data centers is projected to double by 2030, reaching approximately 945 TWh, driven primarily by AI applications [1]. - AI data centers are experiencing a rapid increase in power consumption, with power levels rising from 20-30 kW per rack to 500 kW or even 1 MW [2]. - The shift towards 800V high-voltage direct current (HVDC) architecture is seen as essential for managing increased power demands while minimizing losses [2][3]. Group 2: Technological Advancements - The new 800V DC solution aims to reduce current and I²R losses to one-tenth of current levels, improving overall power supply efficiency by at least 5% [2]. - The 800V architecture is designed to accommodate future AI factory setups, allowing for higher power densities and better thermal management [3]. - NVIDIA plans to mass-produce 1 MW AI factory server racks starting in 2027, which will require the implementation of 800V systems [3]. Group 3: Competitive Positioning - ON Semiconductor is positioned to provide critical components such as 800V SiC MOSFETs and solid-state transformers, enhancing its competitive edge in the high-voltage power market [4]. - The collaboration with NVIDIA allows ON Semiconductor to secure long-term contracts and strengthen its market position against competitors like Infineon [4].

Core Insights - Nvidia has announced the establishment of a consortium for 800V high-voltage direct current (DC) power distribution, which is a crucial step for supporting 1MW power processing racks starting in 2027 [1] - Upgrading to 800V can enhance end-to-end power efficiency by up to 5% and reduce maintenance costs by as much as 70% due to fewer power failures and lower labor costs [1] - The consortium includes major chip suppliers such as Infineon, MPS, Navitas, Rohm, STMicroelectronics, and Texas Instruments, as well as power module suppliers like Delta and Flex Power [1] Group 1: Technical Advantages - The use of industrial-grade rectifiers to convert 13.8 kV AC grid power directly to 800V DC minimizes energy loss typically incurred during multiple AC-DC and DC-DC conversion steps [2] - The 800V busbar allows for 85% more power transmission on the same size conductors, reducing copper demand by 45% due to lower current requirements and resistance losses [4] - The elimination of rack-level AC-DC conversion components frees up valuable space for more computing resources, enabling higher density configurations and improved cooling efficiency [5] Group 2: Industry Collaboration and Innovation - The consortium aims to accelerate the application of high-voltage DC architecture, which has faced challenges in technology and deployment in the past [5] - Infineon has developed a 12kW reference design using GaN and SiC devices with a baseline efficiency of approximately 98%, paving the way for new standards in power architecture for AI data centers [5] - Nexperia showcased an AI data center power system with an 8.5kW power supply, achieving 98% efficiency and a peak efficiency of 99.3% through its patented IntelliWeave technology [6] Group 3: Challenges and Considerations - Transitioning to an 800V high-voltage DC power system presents new challenges in safety, standards, and personnel training [7] - Nvidia and its partners are actively researching the capital and operational expenditures, as well as safety impacts of traditional transformer-based and solid-state transformer (SST) solutions [7] - The transition must include more isolation measures, with the need for circuit breakers that combine mechanical relays and semiconductor components for rapid response [7]