February 24th, 2025 | 07:15 CET
Alibaba, NetraMark, Super Micro Computer – Second AI wave is underway
With the launch of the chatbot ChatGPT by OpenAI in November 2022, generative AI reached the mainstream and quickly took the stock market by storm worldwide. Companies like Nvidia, Palantir, and Super Micro Computer saw their values multiply. After a brief consolidation, new, innovative AI-related business models are currently coming to the fore. Particularly in the pharmaceutical sector, there are promising companies with the potential for exorbitant growth.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
ALIBABA GR.HLDG SP.ADR 8 | US01609W1027 , NETRAMARK HOLDINGS INC | CA64119M1059 , SUPER MICRO COMPUT.DL-_01 | US86800U1043
Table of contents:
"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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NetraMark – AI revolution in the pharmaceutical industry
A new star in the AI sky is NetraMark. With a market capitalization of CAD 111.20 million, the Canadian company is still at the beginning of its development, but the visions and fields of application are gigantic. NetraMark aims to improve the process of clinical studies in the biotech and pharmaceutical industry with software developed in-house based on machine learning and artificial intelligence. According to a study by Mordorintelligence.com, revenues from AI in the pharmaceutical industry will reach USD 3 billion in 2024 and are expected to increase sixfold to USD 18 billion by 2029.
A few days ago, NetraMark released the latest version of its software, NetraAI 2.0, which aims to analyze and optimize clinical trials more effectively. A key element of the new version is its ability to generate significant data with as few as 30 patients, simplifying the often challenging patient recruitment process in terms of time and budget. NetraAI 2.0 also provides real-time insights into progress during the study.
In addition, NetraMark has acquired a major reference customer from the industry's Top 5, with whom it has already started working this year. The pharmaceutical company will use NetraAI in a pilot project to advance the development of therapeutics for treating autoimmune diseases.
NetraMark's shares have already rallied in recent months. Since the end of August of the past trading year, the price has risen by over 860% to CAD 1.49. Given the potential and the billions spent in the capital-intensive pharmaceutical industry, however, it seems that the ceiling has not yet been reached.
Alibaba – Rally continues
After the e-commerce giant from China recently caused a stir with the presentation of its own AI platform Qwen2.5, the counterpart to DeepSeek, the Company presented figures for the quarter ended December that crushed the consensus of analyst estimates for both revenue and profits.
Net income rose to USD 6.72 billion compared to the USD 5.60 billion expected by financial experts. Revenue reached USD 38.61 billion, slightly exceeding the forecast of USD 38.50 billion.
The Cloud Intelligence division was the highlight of the quarter, with revenue growth of 13% to USD 4.37 billion. Sales growth in AI-related products was outstanding, with triple-digit growth rates recorded for the sixth consecutive quarter. Alibaba also announced a collaboration with Apple to integrate AI technologies on iPhones for the Chinese market, a project that is being closely monitored by investors.
Alibaba's core segments also proved robust. The Taobao and Tmall group posted a 5% increase in revenue to USD 18.76 billion in the quarter, despite uncertain consumer sentiment in China.
Following the figures, Alibaba shares continued their rally, which began at the beginning of January. Since then, the performance has been around 66%.
Super Micro Computer – Monster rebound
After last year's sell-off, Super Micro's stock lost around 86% from its peak in March 2024 to a mid-November 2024 low of USD 17.25. However, an impressive rebound began that lifted the price by over 240% to its current level of USD 59.90. In order to spark another price explosion, the stock would now have to sustainably break through the downward trend established since March of last year. However, there is currently little tailwind from the indicators. The RSI is turning down from a high level of 78.27, making at least a short-term consolidation in the direction of the 200-day EMA at USD 45.77 not unlikely.
Despite problems with accounting and the subsequent crash, investors have again placed their trust in the former AI stock market star. Management has until February 25 to show whether this is justified. This is the deadline for submitting the 2024 annual report and the quarterly reports for September and December.
So far, Super Micro's management has emphasized that the deadline of February 25 will be met and that there will be no changes to the financial figures already published.
The AI wave is also hitting the pharmaceutical industry, where NetraMark could emerge as a major player. Alibaba crushed analyst estimates with its fourth-quarter results. Super Micro must deliver after a strong rebound.
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