Over the last 12-18 months, NIA has repeatedly pointed out how Big Tech companies have been buying Nvidia H100 GPUs they don't need, have no use for, and don't even have the capacity to operate... all because small-minded analysts have decided that we should value companies based on how many H100 GPUs they own. Americans have been brainwashed into believing that America's Big Tech companies will lead in AI because they own the most H100 GPUs. NIA believes the opposite. We believe innovation in AI technology will allow small unknown companies to disrupt nearly all of today's largest market cap companies.
DeepSeek has proven what we already knew for a long time: the number of H100 GPUs a company owns means nothing. By America restricting Nvidia H100 GPU exports to China, DeepSeek was incentivized to create much more efficient AI models that require less GPU power to train and operate. In America, none of our Big Tech companies even attempted to develop such a thing! They have received multi-trillion-dollar valuations simply for buying Nvidia GPUs and have had no reason to innovate by creating more efficient models!
There are two privately held VC backed start-ups in the U.S. that have been actively developing software to make GPUs more efficient: GigaIO and Liqid.
One Stop Systems (OSS) has signed GigaIO and Liqid as their first two AI infrastructure clients. Both are using OSS technology to accomplish what DeepSeek has accomplished in China... significantly reducing CAPEX, OPEX, and power costs while allowing for the same level of AI performance. GigaIO and Liqid are using OSS products to make it more cost-effective to deploy and scale AI systems, enabling faster, more efficient processing, and better utilization of hardware resources. This reduces the overall costs of running large AI models, making AI more accessible to companies and organizations.
For a technology stock it is very rare to have a combination of positive revenue growth on a year-over-year basis, positive free cash flow, and a strong balance sheet with a positive net cash position and positive working capital. When a tech company has this combination of strong fundamentals, it will almost always trade with an enterprise value of 5x revenue or higher. Almost all technology stocks trading with an enterprise value of less than 2x revenue have negative revenue growth and/or negative free cash flow and often in combination with a poor balance sheet.
One Stop Systems (OSS) already has positive free cash flow and a strong balance sheet, but revenue growth was slightly negative in 3Q 2024 due to their discontinued in-flight entertainment business. With OSS likely to report 4Q 2024 revenue on March 20th of $15 million for year-over-year growth of 13.98%, OSS will become one of the rare technology stocks to meet all of the conditions necessary to trade at a significantly higher multiple.
We don't need a Space Force or NASA contract to finish the month of March above $10 per share, but if a strong catalyst were to be announced prior to 4Q 2024 results, we could see OSS surpass $10 per share well before March 20th.
OSS is the only publicly traded small-cap AI infrastructure company. None of its larger competitors have done anything to create products that allow companies to get the most out of their GPUs through Composable Disaggregated Infrastructure. This is a niche market that OSS is capitalizing on alone, yet it is currently being valued at an enterprise value of only slightly more than 1x revenue because Americans have been brainwashed into believing that it is impossible to make GPUs more efficient!
So far, OSS along with its first two AI infrastructure clients GigaIO and Liqid have been totally ignored by the investment community... because they are challenging the Nvidia GPU narrative that everybody is relying on to keep America's bubble economy propped up! This is the only time in history that the world's three largest market cap companies have an average enterprise value of 17.39x revenue!
OSS has an enterprise value of 1.17x revenue and will soon be revalued to 5x revenue!
Until Augusta Gold (TSX: G) gets acquired we believe it has the most short-term upside potential, but OSS is our pick to become the #1 largest percentage gainer for the full year of 2025. Augusta Gold (TSX: G) is unlikely to exist at year-end 2025 (a buyout for $5+ per share could occur at any time).
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
