NEW YORK - DIGIASIA Corp. (NASDAQ: FAAS), a prominent Fintech as a Service (FaaS) provider, has announced the acquisition of an initial allocation of 5,120 NVIDIA H200 GPUs (NASDAQ: NASDAQ:NVDA), a move set to enhance its development of advanced AI solutions for clients in the fintech, telecom, and government sectors. The first of these NVIDIA-powered solutions is slated for deployment by the end of 2024.
The company, operating through its UAE subsidiary Digi Tech Limited, plans to base its AI initiatives in the Dubai International Financial Center (DIFC), taking advantage of the region's leadership in AI advancement. This transaction allows DIGIASIA to potentially access a global financial services market estimated between USD 200-300 billion annually.
DIGIASIA's initial tranche of GPUs, valued over $400 million, with an option for an additional 10,240 units, will be deployed across Southeast Asia, India, and the Middle East. The integration with NVIDIA's technology is expected to enhance the company's fintech infrastructure, increasing productivity and efficiency for enterprise clients. Solutions will include advanced AML, fraud detection, KYC processes, and more.
Prashant Gokarn, CEO of DIGIASIA, expressed enthusiasm about utilizing NVIDIA's GPUs to develop their next-generation finance platform, emphasizing the expected improvements in precision and productivity for enterprises. Subir Lohani, CFO and Chief Strategy Officer, highlighted the company's strategy since its public offering in April, aiming to deliver growth and attractive returns with the rollout of the new solutions.
This press release contains forward-looking statements subject to risks and uncertainties, including changes in government and stock exchange regulations, competition, and various political, economic, and social conditions. These factors could materially affect the company's actual results.
The information presented is based on a press release statement from DIGIASIA Corp.
InvestingPro Insights
DIGIASIA Corp. (NASDAQ: FAAS), while embarking on a significant technological investment with NVIDIA, shows a mixed financial landscape according to the latest data. The company's market capitalization stands at $424.54 million, reflecting its position in the market. Despite a striking quarterly revenue growth of 93.8% as of Q2 2023, indicating a robust expansion in its operations, the firm's profitability remains a challenge. The adjusted P/E ratio for the last twelve months as of Q2 2023 is -71.52, highlighting that the company has not been profitable over this period. Additionally, the stock has experienced high volatility, with a six-month price total return of -35.64%, and it has fared poorly over the last month, with a price total return of -12.74%.
Investors considering DIGIASIA should note the company's high Price / Book multiple of 12.28, which may suggest a premium valuation relative to its book value. Moreover, DIGIASIA does not pay a dividend, which might be a consideration for income-focused investors. On a positive note, the company has demonstrated a strong return over the last three months, with a price total return of 26.26%, indicating some investor confidence in its strategic moves and market potential.
For those seeking a deeper analysis, there are additional InvestingPro Tips available that could provide further guidance on the potential risks and opportunities associated with DIGIASIA's stock. Interested readers can find more comprehensive insights at InvestingPro. Plus, for a limited time, use coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment analysis.
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