KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a diversified holding company, today announced its intention to establish a network of artificial intelligence (AI) computing data centers. These facilities will be equipped with high-performance water-cooled H200 Graphic Processing Units (GPUs) to cater to the demanding computation needs of AI applications.
The initiative is set to begin with the construction of the first AI computing data center in Malaysia by the first quarter of 2025, with plans to expand into Europe and the United States by the end of the same year. The data centers will offer GPU rental and storage solutions, collectively termed GPU as a service (GPUaaS), to sectors such as government, finance, and business.
The move taps into the rapidly growing GPUaaS market, which, according to Fortune Business Insights, is projected to expand at a compound annual growth rate of 35.8% from 2024 to 2032, potentially reaching a value of US$49.84 billion by 2032. This growth is driven by the increasing demands of cloud computing, high-performance computing, AI, and machine learning across various industries.
Dato Victor Hoo, Group Executive Chairman and CEO of VCI Global, expressed enthusiasm for the project, emphasizing its potential to contribute to technological innovation and economic growth. The company is currently negotiating with technology partners and GPU suppliers to ensure the successful execution of these projects.
VCI Global, headquartered in Kuala Lumpur, Malaysia, operates mainly in Asia and has a significant presence in the Asia Pacific, the United States, Europe, and the Middle East. Its services range from consulting in capital markets, real estate, AI, and technology, to operating a proprietary financing platform and a secured messaging platform.
The information provided in this article is based on a press release statement. It is important to note that the forward-looking statements in the press release are subject to various risks and uncertainties and may differ materially from actual future results.
In other recent news, VCI Global Limited has reported a significant increase in its fiscal year 2023 performance, demonstrating a 145% surge in revenue to $19.8 million and a 57% rise in net income to $7.2 million.
This growth is attributed to strong performance across all business segments, including IPO advisory and technology consultancies. The company has issued a revenue guidance for fiscal year 2024, predicting a significant increase in net sales and operating income.
The company anticipates net sales to increase by approximately 65% on a 52-week basis and is projecting an operating income growth range of 20% to 23% for the same period.
These developments follow a robust fiscal year 2023, where the company experienced successful expansions in its capital market consultancy and technology ventures.
Executive Chairman and CEO Victor Hoo expressed confidence in the company's business model and its trajectory towards becoming a high-performing company. This news is based on a press release statement, and the company has not updated any forward-looking statements since the date of the press release.
InvestingPro Insights
As VCI Global Limited (NASDAQ:VCIG) gears up to establish a network of AI computing data centers, the company's financial health and recent market performance provide a backdrop for its ambitious expansion plans. With a market capitalization of 36.81 million USD, VCIG is positioning itself to tap into the burgeoning GPUaaS market. Notably, the company boasts an impressive gross profit margin of 62.0% over the last twelve months as of Q4 2023, underscoring its ability to efficiently manage its cost of goods sold relative to its revenue, which stands at 19.78 million USD for the same period.
Despite recent market turbulence, with the stock experiencing a significant 40.36% drop in its price total return over the last month, VCIG's financials reveal a robust underlying performance. The company's earnings multiple is low, with a P/E ratio of 3.02, suggesting that its shares could be undervalued relative to its earnings. This is further supported by the company's PEG ratio of 0.09, indicating potential for growth at a value that may attract investors looking for opportunities in the tech sector.
An InvestingPro Tip highlights that VCIG's relative strength index (RSI) suggests the stock is in oversold territory, which could signal a buying opportunity for contrarian investors or those looking for a potential rebound. Additionally, the company's liquidity position is solid, with cash flows that can sufficiently cover interest payments and liquid assets that exceed short-term obligations. These factors are crucial for VCIG as it embarks on the capital-intensive task of constructing and operating AI data centers.
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