Vishay Intertechnology Surges with Its Role in Nvidia's Supply Chain
On Wednesday, Vishay Intertechnology's shares continued to rise for the second consecutive day following positive remarks from industry analyst Ming-Chi Kuo. The company has been identified as a significant beneficiary in the supply chain for Nvidia's AI servers and the upcoming RTX 50 series graphics cards. Vishay's involvement includes the supply of key components such as MOSFET/DrMOS, vPolyTan capacitors, current shunt resistors, transient voltage suppressors, and Schottky barrier diodes.
The analyst's research highlighted Vishay's strategic gains, including orders from Nvidia for Blackwell AI servers and RTX 50 series graphics cards. Notably, Vishay's MOSFET and vPolyTan components garnered attention for their importance. For instance, Nvidia preferred a combination of Renesas controllers and Vishay's MOSFETs for the 8kW power supply in the GB200 NVL72/36, replacing previous suppliers Flextronics and Delta while sidelining Infineon as a MOSFET provider.
Similarly, in the 2kW power supply used in Nvidia's DGX/HGX servers and the GB200 NVLink Switch, Nvidia transitioned to using Vishay's MOSFETs in collaboration with controllers from ADI and Renesas, moving away from modules provided by MPS and Delta. This shift indicates Vishay's increasing significance in Nvidia's supply chain.
Looking ahead to 2025, Vishay is expected to commence mass production as a new DrMOS supplier for Nvidia's anticipated RTX 50 series graphics cards in the first quarter of the year. This commitment is projected to fully utilize Vishay's existing MOSFET production capacity and account for approximately 20-30% of the company's revenue, with expectations of above-average gross profit margins.
Additionally, Vishay's vPolyTan capacitors, particularly the T55, are already experiencing high demand for 2025, suggesting potential supply shortages. These components are expected to represent a significant single-digit percentage of revenue while maintaining gross margins well above average.
The company's strategic initiative, termed Vishay 3.0, is poised to capitalize on strong demand for Nvidia's AI servers and the new RTX 50 series, as well as opportunities in the recovering automotive sector and the expanding IoT market. The analyst's findings reflect a robust growth trajectory for Vishay, driven by the successful implementation of the Vishay 3.0 strategy, with meaningful results expected to materialize in 2025.