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NV5 partners with Cadence for AI data center design

Published 15/04/2024, 13:34
NVEE
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HOLLYWOOD, Fla. - NV5 Global, Inc. (NASDAQ: NVEE), a provider of professional and technical engineering and consulting solutions, has announced a strategic collaboration with Cadence Design (NASDAQ:CDNS) Systems. The partnership aims to enhance data center designs for AI platforms, specifically targeting NVIDIA (NASDAQ:NVDA) AI Compute systems.

The collaboration was unveiled today as part of NV5's ongoing efforts to advance its data center engineering and commissioning services. NV5 is contributing to the creation of optimized data center environments that can handle the growing demands for increased computing capacity and speed.

NV5's work with Cadence utilizes the Reality Digital Twin Platform to provide design services for new and existing data halls. The focus is on accommodating large NVIDIA H100 AI system configurations, addressing the high power and infrastructure requirements essential for AI Compute in terms of airflow and cooling systems.

Executive Chairman of NV5, Dickerson Wright, expressed enthusiasm for the partnership, stating the company's commitment to designing data center environments that align with the evolving needs of AI data center industry.

The company is also conducting engineering studies to further support the burgeoning AI demand. These studies leverage NV5's expertise in the sector and are part of the company's broader expansion in both domestic and international markets.

This strategic initiative was highlighted in a video during NVIDIA CEO Jensen Huang's keynote at the NVIDIA GTC 2024 Conference on March 18th.

NV5, with a presence in over 100 offices worldwide, specializes in a range of services across multiple business verticals, including utility services, infrastructure engineering, construction quality assurance, buildings & technology, environmental health sciences, and geospatial services.

The company's announcement today is based on a press release statement.

InvestingPro Insights

In the wake of NV5 Global, Inc.'s (NVEE) new partnership announcement, the company's financial health and market performance offer additional context for investors. With a market capitalization of $1.51 billion, NV5 is positioned as a notable player in the professional and technical engineering sector. An InvestingPro Tip highlights the company's impressive gross profit margins, which stand at nearly 50% for the last twelve months as of Q4 2023, underscoring NV5's ability to efficiently manage its cost of services relative to its revenue.

The financial data further reveals that NV5 is trading at an earnings multiple of 36.27, indicating a high valuation by the market relative to its earnings. This could be a testament to the market's expectation of future growth, especially in light of the company's strategic moves like the recent collaboration with Cadence Design Systems. Additionally, NV5's liquid assets surpass its short-term obligations, which suggests the company is in a good position to cover any immediate liabilities. This is a reassuring sign for investors considering the stability and financial resilience of NV5.

InvestingPro Tips also reveal that NV5 is trading near its 52-week low, which might present a potential entry point for investors who believe in the company's long-term strategy and market position. For those interested in detailed analysis and more InvestingPro Tips, NV5 currently has 9 additional tips available, which can be explored further on the InvestingPro platform. Potential subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a deeper dive into NV5's investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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