Core Viewpoint - SAIHEAT Limited has received a BUY rating from uSmart Securities, with a price target raised to $31.32 from $25.87, driven by advancements in nuclear technology, favorable U.S. policies, and increasing demand for AI and cryptocurrency infrastructure [1][8]. Group 1: Key Drivers for Valuation Upgrade - SMR Patent Achievement: SAIHEAT obtained patent approval for its small modular reactors (SMRs) control rod drive mechanism on May 14, 2025, enhancing precision and safety in nuclear systems and strengthening its intellectual property [3]. - U.S. Nuclear Policy Reforms: Recent executive orders from President Trump on May 24, 2025, simplified nuclear licensing and prioritized reactor deployment, removing regulatory barriers for domestic SMR companies like SAIHEAT [4]. - Cryptocurrency and AI Infrastructure Demand: The surge in Bitcoin prices (up 26% since April 1, 2025) and the passage of the GENIUS Act on May 19, 2025, have increased demand for energy-efficient computing, positioning SAIHEAT's solutions favorably [5]. Group 2: Operational and Strategic Positioning - SAIHEAT reported fiscal year 2024 revenue of $5.54 million, slightly above the $5.45 million estimate, but incurred a net loss of $5.89 million due to R&D investments. The company is integrating AI data centers and Bitcoin mining infrastructure to monetize cross-sector demand [6]. - The company's containerized IDC solutions and liquid cooling platforms are gaining traction, with pilot deployments transitioning into full contracts amid the AI and Bitcoin boom [6]. Group 3: Analyst Insight - Chan Kwok Keung from uSmart Securities noted that SAIHEAT has transitioned from a niche SMR player to a comprehensive computing infrastructure operator, with recent patent advancements and favorable policies reducing growth risks. The company's valuation remains significantly discounted compared to peers [7]. Group 4: Valuation Context - The raised target price of $31.32 reflects sector re-rating momentum, with nuclear-themed compute peers outperforming broader indices. SAIHEAT's unique growth potential and intellectual property advantages justify this valuation upgrade [8].
uSmart Securities Updates Coverage of SAIHEAT Limited