Nvidia (NVDA) and Infineon Technologies AG (IFNNY) are collaborating to develop a new power delivery system required for AI (artificial intelligence) data centers. Infineon, a power semiconductor solutions and systems integration company, announced that it will work with chip giant Nvidia to develop high-voltage, direct current power delivery systems.
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Nvidia and Infineon Focus on Innovation in AI
Infineon stated that the two companies are developing an “industry-first” power delivery architecture with central power generation of 800 V high-voltage direct current (HVDC). The new architecture significantly boosts energy-efficient power distribution across the data center and allows power conversion directly at the AI chip (graphic processing unit or GPU) within the server board.
It is worth noting that currently, most high-voltage power in data centers is distributed as alternating current and then converted to the direct current needed by computer chips by individual power supply units within servers. However, the existing system results in losses in moving power around and converting it.
Adam White, Infineon’s Division President for Power and Sensor Systems, believes that the combination of the company’s application and system expertise in powering AI from grid to core and Nvidia’s experience in accelerated computing will help in establishing a new standard for power architecture in AI data centers via faster, more efficient, and scalable AI infrastructure.
Likewise, Gabriele Gorla, Nvidia’s vice president of system engineering, stated that this partnership supports the company’s focus on sustainability while delivering the performance and scalability required for the next generation of AI workloads.
Is Nvidia a Good Stock to Buy Now?
Despite macro challenges and uncertainties around chip export curbs, Wall Street remains bullish on Nvidia stock due to the demand for its advanced GPU chips. The Strong Buy consensus rating for Nvidia stock is based on 34 Buys, five Holds, and one Sell recommendation. The average NVDA stock price target of $164.51 implies 22.4% upside potential. NVDA stock has rallied more than 32% over the past month and is flat on a year-to-date basis.
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