The chipmaker signed a big deal with a major player.
Semiconductor stock Navitas (NASDAQ:NVTS) has more than doubled in value since Wednesday, rising from $1.91 per share on Wednesday to roughly $4.50 per share on Thursday.
The catalyst was a deal that the chipmaker signed with semiconductor behemoth NVIDIA (NASDAQ:NVDA).
Through this partnership Navitas will provide its GaNFast gallium nitride (GaN) and GeneSiC silicon carbide (SiC) chips for use on NVIDIA’s generation 800 V HVDC architecture. Navitas will support NVIDIA’s ‘Kyber’ rack-scale systems powering their GPUs, such as Rubin Ultra, with its GaNFast and GeneSiC power technologies.
The way NVIDIA explains it, the growth of AI workloads is increasing data center power demands. However, according to a blog post, traditional 54 V in-rack power distribution isn’t designed to handle the AI needs at data centers in the future. NVIDIA’s new 800 V HVDC data center power infrastructure is designed to support 1 MW IT racks and beyond, starting in 2027.
NVIDIA is collaborating with several industry partners across the data center ecosystem to accelerate the adoption of this new architecture. One of them is Navitas and its silicon chips.
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“We are proud to be selected by NVIDIA to collaborate on their 800 HVDC architecture initiative. Our latest innovations in high-power GaN and SiC technologies have seen world firsts and have created new inflections into markets such as AI datacenters and electric vehicles,” Gene Sheridan, CEO and co-founder of Navitas, said. “With our wide portfolio range, we can support NVIDIA’s 800V HVDC infrastructure, from grid to the GPU. We appreciate that NVIDIA recognizes our technology and commitment to driving the next generation of data center power delivery.”
The Navitas silicon chips are built to handle high-performing applications, such as data centers, energy storage, electric vehicles and mobile phones. Further, its chips, the company claims, can handle more capacity while processing data faster and more efficiently than its competitors.
“Modern AI data centers require gigawatts (GW) of power for the increasing demand for AI computation. Nvidia’s approach is to directly convert the 13.8 kV AC grid power to 800 V HVDC at the data center perimeter using solid state transformers (SST) and industrial-grade rectifiers, eliminating several AC/DC and DC/DC conversion steps, maximizing efficiency and reliability,” is how Navitas explained it in the press release.
Officials added that with the traditional 54V DC system, more than 200 kg of copper would be needed to power a 1MW rack, which is not sustainable for next-generation AI data centers. The 800V HVDC directly powers the IT racks, which will ultimately drive GPUs, such as the Rubin Ultra.
The bottom line is, this architecture is expected to improve power efficiency by 5%, reduce maintenance costs by 70%, and lower cooling costs. And for a small chipmaker like Navitas to be part of this massive rollout could be transformative, although its still two years away.
Navitas doesn’t have a lot of analyst coverage, as a penny stock, but this move should put it on their radar. Note, that it is still unprofitable, but has been gradually narrowing its operating losses, which were $25 million in Q1.
