NVIDIA (NVDA) Partners with onsemi for 800V AI Data Center Power Revolution

In the latest move, onsemi's collaboration with NVIDIA (NVDA) to enhance AI data centers marks a notable step in expanding its technology ecosystem. Over the last quarter, NVIDIA’s share price rose 62%, driven in part by this collaboration, as it aligns with NVIDIA's efforts to broaden its AI and data center capabilities. Additionally, NVIDIA's robust earnings report and strategic partnerships, including those in quantum computing and AI infrastructure, further supported this upward trend. While the market also experienced significant gains, NVIDIA's advancements in these sectors distinguished its performance, contributing to its notable stock price movement.

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The recent collaboration between onsemi and NVIDIA is poised to expand both companies' reach in AI data centers, potentially influencing NVIDIA's ongoing growth narrative. This partnership aligns with NVIDIA's established strategy to enhance its capabilities in AI and data center sectors, and could further bolster the Blackwell architecture's impact by increasing demand for NVIDIA's products. In terms of longer-term performance, NVIDIA's total shareholder return has been remarkably high over the past five years.

Over the past year, NVIDIA's share performance has outpaced the broader US Semiconductor industry and the US market. This indicates a robust position relative to peers, although the short-term impact of individual collaborations or product launches may vary. The news could positively influence revenue and earnings forecasts by reinforcing NVIDIA's ability to capture a greater share of the AI market through expanded technology applications.

Currently, NVIDIA's share price of US$176.75 is slightly below the consensus analyst price target of US$179.55, suggesting that the stock is viewed as fairly valued by the market on average. However, as NVIDIA progresses with its technological collaborations and diversifies into areas like autonomous vehicles, achieving and possibly exceeding these targets relies on successful execution and management of potential risks. These factors could shape not only short-term trading dynamics but also long-term valuations.

Get an in-depth perspective on NVIDIA's performance by reading our balance sheet health report here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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