Alset Capital Inc. (TSXV: KSUM) released some game-changing news in early April, courtesy of its flagship subsidiary/investee, Cedarcross International Technologies Inc. Cedarcross won access to intermediate an acquisition between two AI (artificial intelligence) behemoths.
Most of us in the financial realm will have heard about these two famous and extremely important AI companies that Cedarcross is partnering with on this acquisition. Both are at the forefront of developing AI technology.
What is surprising is that one of these companies has a market value that just exceeds the market value of the entire Canadian economy!
One is Super Micro Computer Inc. (NASDAQ: SMCI), and the other is the AI supernova, Nvidia Corp. (NASDAQ: NVDA).
Alset Capital is engaged in the business of investing in technology companies, such as Cedarcross, which alone encompasses about 49% of Alset’s portfolio. Meanwhile, Cedarcross provides low-cost access to cutting-edge high performance computing hardware, fostering innovation and growth in the AI sector.
According to Cedarcross’s April 4 press release, “This agreement grants Cedarcross the authority to engage directly with SMCI for the acquisition of GPU High Performance Computing (HPC) Hardware.” Cedarcross provides the hardware that’s powering Nvidia’s most-advanced H100 computer chips.
Simply put, Altus Capital’s flagship AI company Cedarcross now has direct access to work with one of the biggest, most well-known AI leaders!
Technology giant Nvidia is hitting new heights thanks to demand for products connected to AI. Nvidia is worth about US$2.18 trillion, edging out the entire Canadian economy, as measured by GDP, at US$2.12 trillion in 2023, according to the International Monetary Fund. Interestingly, Supermicro’s modular server rack-scale systems are being used to mount AI-related graphics cards from Nvidia, as well as other chipmakers.
While Nvidia is massive, Super Micro Computer is no slouch. Not at all.
SMCI is a global technology leader committed to delivering first-to-market innovation for Enterprise, Cloud, AI, Metaverse, and 5G Telco/Edge IT Infrastructure. It is renowned for delivering one of the broadest selections of Nvidia-Certified systems providing the most performance and efficiency from small enterprises to massive, unified AI training clusters with the new Nvidia H100 and H200 Tensor Core GPUs (graphic processing units).
Greg Lui, CEO of Earthmade Computer Inc., a Super Micro Computer distributor, stated: “This agreement is a testament to our commitment to providing HPC (high-performance computers) AI hardware solutions. By facilitating Cedarcross’s access to Nvidia’s GPU HPC hardware, we are not only strengthening our relationship with Alset and Cedarcross but also reinforcing our position in the AI computing supply chain. We look forward to the innovative advancements that Cedarcross will achieve with this high-performance computing power.”
Alset Capital CEO, Morgan Good, was quoted as saying: “We are very enthusiastic about Cedarcross’s strategic collaboration with Earthmade to purchase Nvidia HPC hardware directly from Super Micro Computer. This agreement not only ensures the seamless procurement of vital AI computing hardware but also solidifies Cedarcross’s competitive positioning in the industry.”
With a US$59.13 billion market cap, SMCI is “one of the leaders in the current AI revolution,” according to Motley Fool. The renowned financial news publication released an article on April 3 asking, “Could Super Micro Computer Become the Next Nvidia?”
As for Alset Capital and its shareholders (who have a great deal to gain from this proposed acquisition between NVDA and SMCI), we are already seeing green indicators for its stock KSUM. And now multiple technical analysis websites are listing KSUM as “Strong Green”.
- TradingView: now showing a STRONG GREEN or GREEN Technical Analysis Summary for all 10 of 10 timeframes, with multiple timeframes showing GREEN and STRONG GREEN Moving Averages and Oscillators.
- Investing com: now showing a STRONG GREEN Technical Analysis Summary for TSX.V: KSUM on 7 of 8 timeframes, with multiple timeframes showing GREEN and STRONG GREEN Moving Averages and Technical Indicators.
As of the morning of April 4:
- Super Micro Computer (NASDAQ: SMCI) is at US$1,015 per share, with a US$59.13 billion market cap
- Alset Capital (TSXV: KSUM) is at $0.42 per share, with a $17.74 million market cap (according to CEO.ca)
See the full breaking news story here:
Bob Beaty
For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s Thestreet.com, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.
Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)
Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;
‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.
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