KUALA LUMPUR - VCI Global Limited (NASDAQ: VCIG), a Malaysia-based AI and technology aggregator, has announced its partnership with the AI Computing Alliance (AICA), led by Enlight Corporation (TWSE: 2438) and Super Micro Computer, Inc. (NASDAQ: NASDAQ:SMCI). The alliance, which includes several technology firms, is set to establish AI Computing Centers (AICCs) to foster the AI ecosystem's growth.
The first AICC, aimed to be one of Asia's fastest AI data centers, will be set up in Taiwan, with operations expected to start by the end of 2024. This center will be powered by NVIDIA H200 Tensor Core GPUs, anticipated to rank it 15th globally in AI computing power. The facility will offer GPU as a Service (GPUaaS) to governments, financial institutions, and businesses.
VCI Global is slated to be a strategic partner in the AICA, with plans to replicate the Taiwan AICC model in Malaysia by the second quarter of 2025. This Malaysian AICC will serve as a hub for AI research, development, and application, aiming to bolster Malaysia's position in the global AI market.
The expansion of AICCs to Singapore, Hong Kong, Japan, and Indonesia aligns with the increasing demand for AI computing power, driven by Large Language Models (LLMs) and AI applications. The global LLM market is projected to grow from approximately US$7 billion in 2024 to over US$35 billion in 2030, with a compound annual growth rate of over 30%, according to MarketsandMarkets research.
Mr. Sam Ding, Chief Executive Officer of AICA Taiwan, expressed enthusiasm about VCI Global's participation, especially for the alliance's interests in Southeast Asia. Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global, also conveyed excitement for joining the alliance and advancing the AI ecosystem in the region.
VCI Global focuses on consulting, fintech, AI, robotics, and cybersecurity through its subsidiaries. The company's main operations span Asia Pacific, the United States, Europe, and the Middle East. Its technology ventures include a proprietary financing platform and a secured messaging platform for governments and organizations.
The information in this article is based on a press release statement.
In other recent news, Super Micro Computer has been the subject of attention from Barclays (LON:BARC), with the firm maintaining its Overweight rating and a price target of $1,000. Barclays anticipates Super Micro Computer to report in-line revenue for the June quarter and projects better-than-expected revenue guidance for the September quarter.
This optimism stems from the company's deployment of liquid cooling technologies in large Direct Liquid Cooling (DLC) AI clouds. The firm also expects Super Micro Computer to exceed its conservative gross margin guidance for the June quarter, potentially leading to higher than expected earnings per share.
In related news, Super Micro Computer and Nvidia Corporation (NASDAQ:NVDA) have been making significant strides in the artificial intelligence (AI) sector, with increased demand for next-generation AI solutions. Super Micro Computer's shares are projected to foster growth in the second half of the fiscal year 2025 and beyond.
Nvidia Corporation, on the other hand, has received server orders from Elon Musk's AI startup, which are equipped with Nvidia's chips and are in high demand for their ability to power a wide range of AI applications.
On the other hand, Super Micro Computer's third-quarter revenue did not meet analysts' estimates, leading to a dip in its stock price. AMD (NASDAQ:AMD), a partner of Super Micro, also saw its shares drop due to a projection of $4 billion in AI chip sales for 2024, which failed to meet Wall Street's high expectations. Despite these developments, analysts remain optimistic about the future trajectory of these companies in the AI market.
InvestingPro Insights
As VCI Global Limited (NASDAQ: VCIG) embarks on its strategic partnership with the AI Computing Alliance (AICA) and Super Micro Computer, Inc. (NASDAQ: SMCI), it's worth noting the financial health and market perception of SMCI. Super Micro Computer, recognized for its role in the Technology Hardware, Storage & Peripherals industry, is positioned to contribute significantly to the development of the AI Computing Centers (AICCs) in Asia.
InvestingPro data highlights that Super Micro Computer has a robust market capitalization of 40.73 billion USD, which underscores its significant presence in the market. With a P/E ratio of 36.15 and an adjusted P/E ratio of 38.83 for the last twelve months as of Q3 2024, SMCI is trading at a high earnings multiple. This could reflect investor confidence in its future growth prospects, particularly in light of the company's substantial revenue growth of 79.79% during the same period.
Moreover, the company has demonstrated impressive revenue growth of 200.01% in Q3 2024, which aligns with analysts' anticipation of sales growth in the current year. This is a testament to SMCI's strong performance and potential for continued expansion within the AI and technology sectors. Additionally, SMCI's gross profit margin of 15.97% indicates its ability to maintain profitability despite competitive pressures.
Despite recent market fluctuations, with the stock taking a significant hit over the last week, SMCI's long-term performance remains noteworthy. The company has seen a high return over the last year, with a 119.19% price total return. Investors considering capitalizing on the company's growth can find more InvestingPro Tips, which offer deeper insights into SMCI's financials and market trends. With 18 additional tips available, exploring these could be valuable for making informed investment decisions.
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