September 11th, 2024 | 07:30 CEST
Super Micro Computer, BlockchainK2, Palantir - Profits with technologies for the future
At a time of rapidly advancing technological innovations, we are experiencing a revolution in the world of work that is bringing about far-reaching changes. Artificial intelligence (AI), blockchain and big data are no longer visions of the future but are already reshaping key areas of the economy today. These technologies promise not only increased efficiency and new business opportunities but also a fundamental redefinition of work processes and corporate structures. However, in order to provide the immense computing power required for these digital transformation processes, data centers are becoming the focus of attention. They form the backbone of this technological revolution. We take a look at one candidate from each area.
time to read: 4 minutes
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Author:
Armin Schulz
ISIN:
SUPER MICRO COMPUT.DL-_01 | US86800U1043 , BLOCKCHAINK2 CORP | CA09369M1077 , PALANTIR TECHNOLOGIES INC | US69608A1088
Table of contents:
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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Super Micro Computer - Flight of fancy stopped
Super Micro Computer (SMC) is a major provider of servers for cloud and AI customers and has made a name for itself with efficient, reliable systems and fast time-to-market. The focus on customized solutions and collaboration with chip manufacturers such as AMD, Intel, and NVIDIA ensures Super Micro's strong positioning in the next wave of innovation. Demand for AI servers remains high, with liquid cooling becoming increasingly important due to its efficiency and environmental benefits. The Company is investing in production capacity, particularly in Malaysia, to meet the growing demand.
The Company is currently under pressure due to a delayed 10-K filing and a critical report. According to a recent short report, the Company could face financial risks due to internal control deficiencies. This led to a dramatic fall in the share price. A deeper analysis of SMC's financials revealed an imbalance between operating cash flow and operating income. While cash flow was negative at USD -2.48 billion, an operating income of USD 1.27 billion was recorded. The main reason for this difference is rising inventories and receivables from customers. These developments could lead to significant problems if demand for AI chips were to fall.
Additional risks for SMC can be found in the concentration of its revenues and receivables on a few major customers. For example, two customers accounted for almost 38% of net revenue in Q1, making the Company vulnerable to revenue volatility. The AI infrastructure continues to boom. The Company has therefore issued optimistic revenue targets of USD 26 to 30 billion for 2025. However, high turnover is only worthwhile if margins remain high. This has not worked out recently. The average price target of all analysts over the last 90 days is USD 823.46. The share is currently trading at just USD 409.19.
BlockchainK2 - Technology to revolutionize business processes
BlockchainK2 is a specialized holding company that makes pioneering investments in companies whose innovative applications of blockchain technology have the potential to transform entire industries. With a stated goal of driving the progress of the blockchain revolution in key industries, BlockchainK2 focuses on areas such as gaming and finance. Through its investments, the Company aims to fundamentally change the way business is conducted in these sectors - whether by revolutionizing video game distribution or optimizing real estate financing and addiction management.
BlockchainK2's current flagship product is the financial platform RealBlocks, which has already received over USD 20 million in investment. This innovative platform uses blockchain technology to make it easier for asset managers and their investors to work together. RealBlocks creates a more efficient and transparent environment for managing alternative investments by seamlessly connecting fund managers with a network of distribution partners. Institutional investors and real estate fund managers, in particular, will benefit from the advantages of this technology, which significantly lowers the barriers to investing in alternative assets and facilitates international distribution.
The addressable market for alternative investments is estimated at an impressive USD 14 trillion, which offers RealBlocks an enormous growth opportunity. The service is already being used by well-known market players such as LaSalle Investment Management, whose global portfolio is worth around USD 77 billion. BlockchainK2 is backed by major investors such as Morgan Creek Digital as well as management. With a current share price of CAD 0.15, the Company has a market capitalization of just CAD 4.54 million. If the fintech sector picks up again, BlockchainK2 shares should also benefit, especially as RealBlocks' development costs were more than four times the current valuation.
Palantir - Strategic partnership with BP and promotion to the S&P 500
Palantir Technologies and BP have announced a five-year strategic collaboration to implement new AI capabilities using Palantir's AIP software. This partnership builds on a decade of collaboration in which Palantir's software has supported BP in oil and gas production since 2014. The AIP software will enable BP to safely and reliably utilize large-scale language models to improve and accelerate human decision-making processes. This partnership is an important step for BP to make data-driven decisions more efficient.
September is a special month for Palantir as the Company is to be included in the S&P 500 Index. This step marks a significant milestone and could further strengthen investor confidence in the Company. Inclusion in the S&P 500 is often seen as an indicator of stability and growth potential, which could attract additional institutional investors. Palantir has built a strong position in the AI and data analytics platform market through continuous innovation and strategic partnerships, most recently with Microsoft.
Despite impressive progress and strategic alliances, many analysts consider Palantir to be overvalued. The Company has shown solid sales growth in recent quarters, but these successes are often offset by high valuation levels, such as the price/earnings ratio of over 170. Analysts emphasize that future partnerships and expansion into new markets will be crucial to meet the high expectations. The fundamental key figures suggest a speculative valuation, which could lead to increased volatility in the short term. The share has gained over 100% since the beginning of the year and is currently trading at USD 34.48.
Those looking to profit as investors need to pay close attention to stock valuations. If they are too expensive, it is best to wait before buying in. Despite financial difficulties,Super Micro Computer remains a key player in the AI server market. BlockchainK2 is revolutionizing the financial sector with RealBlocks through blockchain technology. The market capitalization can be considered favorable for the asset it holds. The situation is different with Palantir. The valuation is high even if the strategic partnerships such as with BP and the inclusion in the S&P 500 are positive.
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