Understanding the Market | INNOSCIENCE's afternoon gains expanded by over 23%, and Credit Suisse pointed out that the company's partnership with NVIDIA as an 800V DC power supplier is of great significance

According to the Zhitong Finance APP, INNOSCIENCE (02577) rose 30% last Friday, and the gains expanded by over 23% this afternoon. As of the time of writing, it is up 23%, priced at HKD 70.85, with a trading volume of HKD 2.172 billion.

In terms of news, INNOSCIENCE issued an announcement formally responding to rumors regarding its collaboration with NVIDIA. The announcement stated that the company has recently reached a partnership with global AI technology leader NVIDIA to jointly promote the large-scale implementation of the 800VDC (800-volt direct current) power architecture in AI data centers. This architecture is a new generation power system specifically designed by NVIDIA for future efficient power supply megawatt-level computing infrastructure, which has significant advantages in system efficiency, thermal loss, and reliability compared to traditional 54V power supplies, supporting an increase in AI computing power by 100 to 1000 times.

Credit Suisse published a report stating that INNOSCIENCE's inclusion in NVIDIA's list of 800V DC power suppliers is significant for gallium nitride (GaN) and INNOSCIENCE. The firm pointed out that INNOSCIENCE's entry into NVIDIA's supply chain may be accelerated due to TSMC's closure of its gallium nitride foundry. The firm estimates that the total addressable market (TAM) for gallium nitride in AI data centers is initially estimated at USD 2.5 billion, meaning that INNOSCIENCE's stock price surge last Friday only capitalized potential profits at a 5x price-to-earnings (PE) ratio. The firm agrees that it is still early to quantify the potential, as the 800VDC architecture and Ruben chip design have not yet been finalized. The firm expects mass production to begin in 2027