SEALSQ Corp (NASDAQ: LAES), a semiconductor and post-quantum technology developer, has announced its entry into the AI chip market, leveraging its AIoT (Artificial Intelligence for Internet of Things) strategy.
The company aims to integrate AI with IoT technologies, enhancing digital transformation across industries.
The AIoT strategy involves the integration of advanced semiconductors, smart sensors, AI technologies, and a comprehensive data cloud to create a holistic platform designed to foster innovation and ensure the efficiency of digital transformation initiatives for its customers. SEALSQ's ecosystem currently secures over 1.6 billion IoT devices with its VaultIC solution.
SEALSQ's moonshot development plan includes the integration of comprehensive post-quantum chips into mainstream computing and AI research by 2028. The company's high-level goals are to achieve a 50x improvement in AI training and inferencing times and ensure 99.999% quantum-resistant security for all AI operations.
The company's strategic initiatives encompass collaboration with AI research institutions, partnering with telecom providers for ultra-secure quantum networking, and working with industrial automation, automotive, and home automation leaders to introduce quantum-enhanced products.
SEALSQ has outlined an implementation roadmap spanning five years, focusing on post-quantum R&D, quantum integration with developer kits, international market expansion, and the realization of a 50x AI performance improvement vision.
The company's approach to AI in cybersecurity is to integrate AI with IoT for applications such as fraud detection and network security, enhancing the recognition of potential threats and overall system resilience.
SEALSQ Corp has faced a slowdown in the semiconductor industry, reporting a preliminary unaudited revenue of approximately $5 million for the first half of 2024. Despite this, the company maintains a robust new business pipeline valued at $71 million. In an effort to regain compliance with Nasdaq's minimum bid price rule, SEALSQ is evaluating options to address the noncompliance issue.
SEALSQ is also making strides in product development, with plans to launch Quantum-Resistant Secure Chips by Q4 2024. The company has also developed a cybersecurity solution to protect Electric Vehicle (EV) charging stations, incorporating blockchain technology for enhanced security.
InvestingPro Insights
As SEALSQ Corp (NASDAQ: LAES) embarks on its ambitious journey into the AI chip market, the company's financial metrics and market performance provide a backdrop for investors to consider. With a market capitalization of 9.37 million USD, SEALSQ is navigating through challenging financial waters. The company's recent performance shows a significant price decline, with a 1-month total return of -48.34% and a 3-month total return of -65.41%. This sharp downturn is reflected in the stock's current price, which stands at just 4.43% of its 52-week high.
An InvestingPro Tip indicates that the stock is in oversold territory according to the Relative Strength Index (RSI), suggesting that it may be undervalued at its current trading price of 0.41 USD. Furthermore, amidst the recent price drops, the company has managed to maintain a gross profit margin of 48.14% over the last twelve months, which could indicate an underlying resilience in its business model despite market volatility.
Yet, investors should be aware of the company's challenges. SEALSQ is quickly burning through cash, and analysts anticipate a sales decline in the current year. Additionally, they do not expect the company to be profitable this year, with net income projected to drop. These concerns are crucial for potential investors to consider as they evaluate the company's long-term growth potential and its ability to capitalize on the emerging AIoT market.
For those seeking more in-depth analysis, InvestingPro offers additional insights with more InvestingPro Tips available for SEALSQ, which can be found at https://www.investing.com/pro/LAES. These tips provide a comprehensive look at the company's financial health and market prospects, aiding investors in making informed decisions.
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