ON Semiconductor Projects Higher Silicon Content in Future NVIDIA AI Racks
ON Semiconductor anticipates significantly increased silicon content in NVIDIA's next-generation AI data center racks starting in 2027. The company's CEO outlined this at a recent conference, highlighting a shift to 800-volt architecture. Current financials show revenue declines amid a semiconductor trough, but stock performance has improved.
investing.comWe have limited corroborating sources on this story right now. This page will update automatically as more coverage emerges.
Current Market Position
ON Semiconductor's revenue is down 15% year-over-year, with fab utilization at around 68%. The stock rose 21% in a single week and is up 167% from its April 2025 low. The company produces chips for power management, sensors, and voltage regulation. Historically, the bull case was electric vehicles.
Every EV needs enormous amounts of silicon carbide to manage battery power, and ON built one of the largest SiC franchises in the industry.
Conference Details and Projections At
the Morgan Stanley TMT Conference in March, a framework for AI data center racks was presented. Current racks operate at about 120 kilowatts with ON Semiconductor content valued at approximately $9,500 per rack. Next-generation racks, set to ship in the second half of 2027, will run at nearly 1 megawatt using 800-volt direct current architecture.
Technical Shift Explanation
The move to 800-volt systems allows the same power with less current, enabling thinner cables and reduced copper usage. This change lowers costs and improves efficiency in data centers.
Every 800V rack NVIDIA ships in 2027 is worth roughly 11x more ON silicon than the 54V racks shipping today.
Key Facts
Story Timeline
4 events- April 2026
ON Semiconductor stock is up 167% from its April 2025 low, with a 21% rise in the past week.
1 sourceBenzinga - March 2026
CEO Hassane El-Khoury outlined AI rack projections at the Morgan Stanley TMT Conference.
1 sourceBenzinga - 2025
NVIDIA's Blackwell platform expected to use 54-volt architecture.
1 sourceBenzinga - Second half of 2027
Shipments of 800-volt AI racks begin, increasing ON Semiconductor silicon content.
1 sourceBenzinga
Potential Impact
- 01
ON Semiconductor's revenue could rise due to increased silicon demand in AI racks.
- 02
NVIDIA's shift to 800-volt architecture may reduce data center costs through efficiency gains.
- 03
Consensus models might adjust upward for ON Semiconductor's future earnings.
- 04
Semiconductor industry could see broader adoption of silicon carbide in high-power applications.
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