GEO Investing

Investors have not found one of our Top 5 Fave Model Portfolio holdings that should benefit from the AI “hype” that is not actually hype. We have followed it for 7 years, but today, the company is led by a new CEO that used to work for its biggest customer. 

This little known data center company generates around $20 million in revenue, is profitable and has a major customer at the front lines of building out AI data center infrastructure with its partner, AI chip maker NVIDIA Corporation (NVDA).

Yet, the stock has been trading near its lows. That being said, shares are starting to trickle higher.

We think NVDA’s earnings release published yesterday after the market closed on February 21, 2024., which mentions data centers, is a potential reason.

The transformative potential of AI and the surge in cloud services driving unprecedented demand for modern, efficient data storage solutions. These technologies are not just shaping the future but are pivotal to sustaining competitive advantages in a digitally-driven world. With the landscape rapidly evolving, informed investors can't afford to miss out on the critical insights and opportunities these sectors present. Subscribe now to stay ahead in the game of future forward-thinking investments.

By now, you probably know that NVDA shares were up 15% on the strong Q4 report.

Comments from the company’s CEO show how important of a growth factor AI is going to be for them going forward:

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of NVIDIA.

“Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level.

NVDA is up 57% this year and 617% since its bottom in 2022. 

Speaking of data centers, Super Micro Computer, Inc. (SMCI) shares are up 247% since the beginning of the year and 2,050% since the beginning of 2022. The company generates around $24 billion in annual revenue. SMCI is a Total IT Solutions provider with server (Data Centers), AI, storage, IoT and switch systems, software and services while continuing to deliver advanced high-volume motherboard, power and chassis products.

There’s more…

Cyber security stock CSP Inc. (CSPI), one of our Buy On Pullback Model Portfolio candidates that we unfortunately never added to the portfolio, is up 26% today, possibly due to investors finding out that CSPI has “partnered” with NVDA, per an exchange made between an investor and  CSPI’s CEO on its Q1 2024 earnings conference call on

Investor

“And we know that there is a press release showing that NVIDIA is a current partner. Now I know companies like NVIDIA are very secretive and you might not be able to tell me anything about it, but it is public info that they are a partner. Are they partnering on the AZT side? And are you still in talks with other big cybersecurity players to potentially sell this for you since it doesn’t compete and it could just be an add-on product like Palo Alto’s offering?”

Victor Dellovo, CSPI CEO

“Yes and yes. We are still talking to NVIDIA heavily, weekly, and we are still talking to other major players out there to partner with them to make our offering as a — selling as a bundled product.”

CSPI is up nearly 200% since we added to the BOP bench on September 29, 2023.

Why is this all interesting? Because the data center company we are talking about tucked away verbiage, in its third-quarter earnings conference call, that mentions AI’s role in data centers and that its customers are asking how they can get computer solutions (AI) as quickly as possible.

Want high quality microcap ideas and high probability special situation turnaround stories based on facts and not hype?

Along with this idea, you will gain access to all of GeoInvesting’s wide array of services, content and tools that will help you make informed investing decisions.

Basic Pro
PER MONTH $10
  • Stock picks from our analyst team, backed by in-depth research
  • Stock pitches from our Premium subscriber investor network.
  • Market moving information that we find well ahead of other investors, giving you a competitive advantage.
  • Morning “get your day started” emails.
  • 16 Years of archived research on over 1500 microcap stocks and counting.
  • Live and Archived Video Events:
    – CEO Fireside Chats and Briefings.
    – Microcap Expert Interviews.
    – Monthly Coverage Universe Review.
  • Week In Review Newsletter, just in case you missed our updates and alerts.
  • Multibagger case studies and Investment Process Education.

OR
Receive the investing strategies that we have used for 15 years to generate superior returns, along with documented proof. Opt in for free below.
Join Email List

Our History

1500+ Equities Covered
200+ Multibaggers
30+ Years Of Investing Experience
200+ Management Interview Clips

Subscribe Now For A Risk Free Trial

About GeoInvesting

Geoinvesting is a research platform founded in 2007 to publish premium research on microcap stocks that meet a certain set of criteria that we have proven leads to superior returns. Empirical evidence proves that investing in microcap stocks beats the returns of larger cap stocks by 8.24% per year. Even Warren Buffett and Peter Lynch have said that if they were to invest in one type of stock, it would be microcaps.

We provide our subscribers with an even bigger edge by combining the microcap investing edge with our own tested strategies to find the best stocks that are undervalued relative to their growth prospects or other positive catalysts. For example, our Model Portfolio that comes with a GeoInvesting Premium Subscription, and includes stocks the crowd is ignoring, has produced 9 out of 10 winning portfolios with an average return of 43.41%.

Our approach is based on qualitative and quantitative factors that finds stocks a point where they are going through significant changes that the market has yet to identify. This opportunity is only available in the Microcap world, an area ignored by institutions, Wall Street and the financial media.

Over the last 15 years, we have also built a expert Microcap investor network who contribute ideas to our subscriber base.