Nvidia shareholders braced for a potential coldfront following Infineon's attacks, prompting speculations about the need for warm clothing.
In a significant move, German semiconductor manufacturer Infineon has acquired Ottawa-based company GaN Systems, purchasing the corresponding know-how for gallium nitride (GaN) chips. This acquisition is expected to benefit Infineon's stock in the long run, as GaN chips are considered a potential winner in the megatrend of artificial intelligence.
Infineon is a member of the BOERSE ONLINE Chip Power Index, a index developed by Boersenmedien AG, which has now granted Infineon a license to use the index. Boersenmedien AG receives remuneration from Infineon in exchange for the license. The BOERSE ONLINE Chip Power Index provides more information about Infineon.
GaN chips, known for their exceptional efficiency, are particularly attractive for applications that require high energy efficiency and reliability. They excel in data centers due to their high switching speed and low losses at high voltages. Infineon's GaN chips are designed for power conversion and aim to reduce energy consumption in power supply systems, particularly in data centers.
These properties often justify the initial investment through improved performance and reduced operating costs over the lifetime of the components. GaN and SiC chips, though more expensive to acquire initially, can save costs in the long run due to their superior efficiency in operation. As a result, GaN chips are expected to potentially turn the tables for Infineon in the long run due to their energy-saving capabilities.
Despite a decline in revenue and profits for the third quarter, with a nine percent drop in revenue and a 52 percent drop in profits compared to the previous year, the outlook for Infineon's fourth-quarter performance was slightly revised upwards. The current price of Infineon's stock is around 25 euros.
However, there are no search results providing information about the name of the founder who will presumably sell Infineon after the acquisition of GaN Systems in October 2023, nor about the amount involved.
It's worth noting that this article does not contain information about Palantir Stock or Deutsche Telekom Stock. Nvidia typically uses silicon-based materials for its power-saving chips. Nevertheless, Infineon's focus on GaN technology is expected to set it apart in the semiconductor industry.
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