🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

NV5 partners with Cadence for AI data center design

Published 15/04/2024, 13:34

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.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.