Is This Under-the-Radar Chip Stock a Buy as It Lands Nvidia Partnership?

The artificial intelligence trade is in full force, as enterprises across a range of industries worldwide recognize that AI not only increases productivity, but also boosts profitability. And if there is one company that defines the AI megatrend, it is Nvidia (NVDA). The California-based chipmaker powers the AI revolution globally, and with a mammoth market cap of $4.3 trillion, it is the world’s most valuable company now.

Thus, any association with the Jensen Huang-led company is always looked upon as a positive development, rewarded by the market with a share price appreciation. That is exactly what happened with the shares of ON Semiconductor (ON), which witnessed a jump of about 3% in yesterday’s pre-market trade following an announcement that it will be partnering with Nvidia to accelerate the adoption of 800-Volt Direct Current power solutions for next-generation artificial intelligence data centers.