Artificial intelligence is the most transformative technology of our era, but it just hit its first massive roadblock.
95% of America’s data centers are not equipped to handle modern AI workloads, however, Alex Koyfman has found one “Transceiver AI Data Center Stock,” whose breakthrough device solves AI's greatest infrastructure challenge.
The Teaser
“$1 Trillion will need to be spent building AI-optimized data centers in the next few years to meet AI’s growing needs.”
Angel Publishing's senior analyst Alex Koyfman has been on top of the AI boom since December 2016. We have previously reviewed and revealed his Oppenheimer Uranium Stock and his “Lithium Volcano” Mining Company, among other picks.
The quote about $1 Trillion needing to be spent building AI data centers comes directly from Nvidia’s leather jacket-wearing CEO, Jensen Huang.
Well, it didn't take long for Jensen's statement to become a reality.
Given the recent unveiling of the Stargate joint venture investing as much as $500 billion in AI infrastructure and Amazon, Google, Microsoft, and Meta's commitments. The total figure could easily top $1 Trillion.
Much of this will be spent on hyperscale data centers. Newer, larger facilities that can handle the scale and complexity of AI.
But even these massive hyperscale data centers, the size of several football fields, face a familiar problem – energy.
It’s estimated that by 2030, data centers will account for 16% of U.S. electricity consumption, up from only 2.5% in 2022.
This is where a tiny, critical device called a transceiver comes into play.
Simply put, no data center can function without them.
It's because transceivers are responsible for transmitting and receiving data between servers, like a communication bridge relaying data across vast distances in the blink of an eye.
However, traditional transceivers have some serious limitations, they’re slow, expensive, and rely on manual assembly.
For hyperscale data centers needing millions of transceivers to handle immense amounts of data, this is impractical.
To top it all off, traditional transceivers can no longer handle the increasing bandwidth requirements of AI, and with AI workloads growing more complex. In short, the problem is only going to get worse.
One innovative company is out to change this and Alex believes it's the breakthrough AI has been waiting for.
The Pitch
The name of the revolutionary AI transceiver company is revealed in a newly published investment report, called: “The Tiny Firm Set to Power Every AI Data Center on Earth.”
It can be ours with a no-risk trial of Alex's research service Microcap Insider for $1,999.
The offer comes with a three-month trial period, weekly issues, two bonus reports, complete research for every recommendation, and more.
Revolutionizing the Transceiver
AI workloads continue to expand and the demand for scalable, affordable data center technology is skyrocketing.
A McKinsey & Co. analysis suggests that demand for AI-ready data center capacity will rise at an average rate of 33% annually between 2023 and 2030.
This is changing how data centers are being designed and operated.
While most investors are looking at cloud service providers and graphics processing unit (GPU) suppliers to capitalize, one company is quietly revolutionizing the most important tech – the transceiver.
Its solution addresses the key challenges of cost, speed, and energy consumption that are missing in today's transceivers.
Alex says the innovative firm has “developed a revolutionary device that automates the production of transceivers.”
By integrating all of the components needed for a transceiver, lasers, detectors, filters, and more onto a single chip, it is enabling hyperscale data centers to be operational quicker.
This has caught the attention of the world’s largest tech companies.
The likes of Amazon, Google, Microsoft, Meta, and NVIDIA are all adopting this company’s revolutionary transceivers to power their AI-driven data centers.
But that's not all…
Luxshare, the second largest iPhone maker after Foxconn, has also embraced this company’s technology.
Bottom line: The unparalleled demand for faster, more energy-efficient data transmission is positioning this firm as a key player in the next phase of AI’s global expansion, creating a huge early-stage opportunity for investors.
Let's find out what it is.
Revealing Alex Koyfman's Transceiver AI Data Stock
Only a precious few in-direct clues were provided in the abbreviated teaser. Here is what we know:
- This small transceiver company’s technology offers data speeds that are twice as fast as Mellanox’s solutions and yet the company is valued at just a tiny fraction of Mellanox’s acquisition price of $6.9 billion.
- The company has also secured strategic partnerships with industry giants like Mitsubishi, Foxconn, and Luxshare.
- Due to the tiny size of this microcap, it is sensitive to large capital inflows.
POET Technologies Inc. (Nasdaq: POET) looks like the pick here.
- POET is currently valued at only $405 million, a true microcap.
- Besides transceivers, POET develops advanced optoelectronic solutions for AI and other cutting-edge technologies.
- The company has established partnerships with Luxshare, Mitsubishi, and Foxconn Integrated Technology.
The Next Cisco Systems?
Back when people were talking about the Internet like we are about AI today, one company's name consistently came up.
Cisco Systems.
The company created the technology that became the backbone of the early web, making it possible for computers to communicate efficiently over networks.
What followed was a 96,150% stock rise within a decade. That’s enough to turn a $1,000 investment into more than $971,500!
Can POET repeat this once-in-a-lifetime 1,000x performance?
I'm no expert in AI networking tech, but POET's high-profile customer wins to date suggest that its products are plenty capable.
Revenue figures for the past three years have been tiny, under $1 million, and it has had to sell significant equity to fund operations during this time. However, CEO Suresh Venkatesan stated in POET's latest Q3 earnings release that he is “confident the company will turn in significant revenue in the coming year.”
Others who are knowledgeable about POET's tech have also posted that it has “a flexible and versatile platform, that is more cost-effective and scalable than others“.
Indeed, POET announced at the end of last year that production of its transceivers is now underway and will soon exceed one million units per year.
This could be POET's breakout year or it could get left behind by other, more established, optical transceiver companies like Coherent Corp. (NYSE: COHR), Zhingji Innolight Co., and Qorvo Inc. (Nasdaq: QRVO).
Time will tell, but if POET has just one-tenth the impact of Cisco, then 100x to 1,000x returns are a distinct possibility. But that's a BIG if.
A quintessential high-risk, high-reward early AI play. You gotta love technology!
Quick Recap & Conclusion
- Artificial Intelligence has just hit a major roadblock, but Alex Koyfman has found one “Transceiver AI Data Center Stock,” whose breakthrough device solves AI's greatest infrastructure challenge.
- The Transceiver is a critical piece of technology responsible for transmitting and receiving data between servers, and one tiny company has automated its previously manual manufacturing process.
- Alex reveals the name of the revolutionary AI transceiver company in a newly published investment report, called: “The Tiny Firm Set to Power Every AI Data Center on Earth.” The report can be ours with a no-risk trial of Alex's research service Microcap Insider for $1,999.
- Clues were few, but they were enough to reveal Alex's Transceiver AI Data Stock for free as POET Technologies Inc. (Nasdaq: POET).
- POET's transceiver tech is formidable and if management is right about significant revenue starting to pour in this year, the stock could start gaining momentum. A high-risk, high-reward microcap with moonshot potential.
Which company has the best transceiver technology? Share your thoughts in the comments.
FYI: COHR, not CHOR