$6701 (-5,44 %) is also an interesting Asian value.

STRASBOURG, France - Transgene (Euronext Paris:TNG) and NEC Bio B.V., a subsidiary of NEC Corporation (TSE:6701)NEC Bio B.V., a subsidiary of TNG, today signed a license agreement for the clinical development of TG4050, an individualized cancer vaccine against HPV-negative head and neck tumors. NEC, a $33.6 billion IT services company, brings its AI expertise to the partnership.

TG4050 utilizes an MVA-based viral vector containing neoantigens selected by NEC's AI-powered prediction platform. The therapy targets tumor-specific genetic mutations that are unique to each patient and is being evaluated for the prevention of relapse after surgery and adjuvant therapies.

Under the agreement, Transgene gains access to NEC's AI-based neoantigen prediction platform for the further development of TG4050 for the adjuvant treatment of resected HPV-negative head and neck tumors. The license includes rights for clinical development, commercialization and potential partnerships. NEC retains ownership and operational control of its AI platform.

NEC will receive a technology access fee of €2.5 million in the form of Transgene shares and a further €2.5 million in cash until early 2028. The company is also entitled to undisclosed development milestone payments and a double-digit share of profits or royalties. According to an analysis by InvestingPro the NEC share is currently trading below its fair value and has a "GOOD" score for financial health. The stock appears on the platform's watchlist for the am stärksten unterbewerteten stocks.

Transgene will issue 3,345,824 new shares to NEC Bio B.V. at a price of €0.7472 per share, representing 1.22% of the share capital after the issue. The price corresponds to the volume-weighted average of the last five closing prices on Euronext Paris prior to the signing of the agreement. The capital increase is based on a resolution of the Combined General Meeting of May 15, 2025 and is expected to be completed by the end of April 2026.

TG4050 is currently in a Phase 2 trial. The therapy utilizes NEC's neoantigen prediction system, which uses machine learning to select mutations that are likely to elicit strong immune responses.

This article is based on a press release from the companies.

Was the share of $6701 (-5,44 %) . After the presentation here and a little research, I see a chance that they can meet my return requirement.

Hello my dears,

I have noticed in the last few comments that you are interested in Japanese players from the growth sectors. With Kawasaki $7012 (+1,38 %) I have already heard from some people that they are very sad about not having bought after my presentation.

But many of you are also annoyed by all the fantasies about how AI could make everything disappear. And the resulting exaggerated sales.

That's why there's an exciting company for you today. One that is giving a lot of thought:

"How can we use AI to improve the everyday lives of us humans. Without the AI causing any harm in the process"

It is definitely worth taking a look at the entire presentation by clicking on the link. 251203_01.pdf

Again, I look forward to many comments and hope for a great discussion.

In terms of the chart, the share is at an exciting level. But probably not yet a time to buy.

What do you think?

Have fun reading!

$6701 (-5,44 %)

Many of you will certainly associate NEC with computer hardware and POS systems. And that's why I'm sure you'll be all the more amazed at what NEC has to offer. And why I am introducing the company to you. I hope you enjoy it as much as I do.

The NEC Corporation specializes in the manufacture and marketing of computer and telecommunications equipment. Net sales are distributed among the individual activities as follows:

- IT services (53.9%): Integration, maintenance, outsourcing, support services, etc.;

- Sales of IT infrastructure products and network systems (17%). In addition, the Group offers network services;

- Sale of software for digital government and financial services (14.9%);

- Other (12.7%): Sales of hardware, cell phones, lighting products, energy management and storage systems, etc.

The geographical breakdown of net sales is as follows: Japan (75%), Asia/Pacific (11.2%), Europe/Middle East/Africa (9.8%) and the Americas (4%).

The NEC Corporation was founded in 1899. Today, the NEC Group's approximately 110,000 employees use world-leading AI, security and communication technologies to meet the most pressing needs of customers and society.

NEC and Netcracker

In 2008, after 15 years of independent growth, Netcracker became a wholly owned subsidiary of NEC Corporation. The combination brought together NEC's 100+ years of networking expertise and innovation with Netcracker's deep IT understanding and aggressive go-to-market strategy.

Since then, NEC has consolidated all of its telecommunications software and services assets under Netcracker. These assets range from innovative applications and service platforms - including customer, service and network management - to NEC's comprehensive range of professional services.

NEC currently generates around 14-15% of its sales in the Aerospace & Defense sector.

This is a remarkably high proportion for an IT-heavy company like NEC - and explains why NEC is regarded as a strategic player in the space and security technology sector in Japan.

NEC Space Systems

NEC's space-related business began in 1956 when it supplied a rocket telemetry transceiver system to the Production Engineering Laboratory of the University of Tokyo. NEC subsequently led the development of Japan's first satellite, Ohsumi, which was launched in 1970. Since then, NEC has been involved in the development of some 80 satellites, including communications, broadcasting, earth observation, astronomical observation, engineering test and interplanetary exploration satellites.

The Internet connects the world

[99% of global communications]

Over 99% of intercontinental communication relies on undersea cables.

submarine cables. The NEC has been developing digital infrastructure for over half a century

Intelligent agricultural management

CropScope innovates agricultural operations with digital farming using AI and data analytics

. Optimizes all players in the food and agriculture value chain

November 19, 2025

NEC präsentiert auf der COP30 das Dekarbonisierungspotenzial seiner landwirtschaftlichen Lösung CropScope

FinTech

There areFacial payments with NEC's world-leading facial recognition, NEC Financial Insights and Supply Chain Finance, NEC's Cyber Intelligence & Operation Center that protects always-on financial services, and Avaloq's co-developed front-to-back banking solutions with partners.

NEC is a pioneer and advocate of digital government

(my dears perhaps a good partner to drive digitalization in Germany)

NEC has decades of experience in enabling the digital transformation of government services and has continuously expanded its service portfolio in this sector over the years. Digital government is a key priority for the company, as NEC's vision for a digitized world aligns with its corporate philosophy of "Orchestrating a Brighter World". Through its many business divisions, NEC is able to enable the complete digital transformation of government services in areas such as national citizen identification, public safety solutions, e-health and intelligent transportation. At the heart of these shortening services is NEC's key expertise in technologies such as biometrics, AI, 5G and cloud computing, which are constantly providing governments with new and more efficient ways to deliver services to their citizens.

The presence of

NEC's presence in Digital Government has grown significantly in recent years and has become an increasingly global organization, as the company additionally acquired Denmark-based Northgate Software Solutions (now known as NEC Software Solutions UK) in 2018 and Denmark-based KMD in 2019 to provide a more comprehensive suite of IT solutions to its government partners. These acquisitions, combined with NEC's internal R&D initiatives, have created a strong foundation to create new digital government solutions that enable fair and efficient access to government services for all in an efficient, transparent and secure way. As a leader in the digital government industry, NEC is committed to leveraging its core technological expertise to create a safer and smarter society.

My dears, such projects naturally mean recurring revenue.

So that the post doesn't get too long, I'll add the link here for more products and solutions.

• Industries
• Luft- und Raumfahrt
• Landwirtschaft
• Luftfahrt

Revolutionizing air travel in India: NEC's digital ID solution

Airport Authority of India (AAI): Fallstudie | NEC

• Finanzen
• Regierung
• Gesundheitswesen
• Logistik
• Herstellung
• Einzelhandel
• Telekommunikation

• Verkehr

New real-time information system for public transport in Canterbury

Umwelt Canterbury: Smart Transportation | NEC

• Intelligent transportation systems

• Solutions & Services
• KI (Künstliche Intelligenz)
• Biometrische Authentifizierung
• Cloud
• Katastrophenvorsorge
• Anzeige- und Digitalbeschilderung
• DX-Designberatungsdienst
• Netzwerklösungen
• Sicherheit
• Sichere Berechnung
• Smart CitySmart

City solutionProvince of Córdoba

Provinz Córdoba: Fallstudien | NEC

• Products
• Computer
• Eingebettete Systeme
• Netzwerkprodukte
• Software

NEC Cybersecurity at the forefront: high hopes for new center "Protecting . JP"

December 16, 2025

NEC Cybersicherheit an der Spitze: Große Hoffnungen für neues Zentrum "Protecting . JP": NEC-Geschichten | NEC

NEC's technological strengths

What is needed: Comprehensive capabilities to utilize AI, security and platforms in society

AI

• Leading industrial transformation through AI, including advanced technologies such as our self-developed core AI technology "NEC cotomi"

Security

• Leading industrial transformation through AI, including advanced technologies such as our self-developed core AI technology "NEC cotomi"

Platform technologies

• Solving social problems by implementing intelligent platforms that process diverse applications, including AI, efficiently and quickly, as well as secure networks that increase reliability

High technological competitiveness on a global scale

Advanced technologies are the driving force behind NEC's competitiveness - now and in the years to come

What is NEC BluStellar?

BluStellar is NEC's internal and external innovation frameworkwith which the company can advanced technologies (AI, security, platform technologies) systematically:

• developed,
• tests within its own group ("Client Zero")
• standardized,
• transferred into marketable products,
• and rolled out to customers.

So it is not a single technologybut a strategic systemthat bundles and accelerates NEC's technological strengths.

What does BluStellar actually include?

BluStellar is an umbrella term for NEC's state-of-the-art technologies:

AI:

• NEC cotomi (LLM), AI agents, medical agentic AI

Security:

• CyIOC (Cyber Intelligence & Operation Center), AI-supported threat analysis

Platform Technologies:

Optical communication, subsea cables, quantum security, optical computing

251203_01.pdf

IR

Mitteilung zum Rückkauf von StammaktienNEU

February 9, 2026

NEC Corporation

1. reason for the buyback

As part of its capital allocation policy, NEC will prioritize aggressive investment in growth areas and return profits to shareholders through capital gains from increased enterprise value and stable dividends.

With this in mind, NEC has decided to repurchase its own shares after fully considering factors such as the improvement in NEC's financial position and the current price of ordinary shares with regard to earnings prospects.

Financial results for the third quarter of the fiscal year ending March 31, 2026

260129_01.pdf

The domestic IT and ANS (aerospace/defense) sector continued its strong performance.

Profit increased due to the strong performance in the aerospace/defense sector and the elimination of one-off expenses from the previous year in the submarine systems sector

・Telecommunication Services recorded expenses in the third quarter to improve future profit structure

JPY in millions2JPY

Estimates

Year Sales Change

2025 3.423.400 -1,55 %

2026 3.554.811 3,84 %

2027 3.761.028 5,8 %

2028 3.953.116 5,11 %

Year EBIT Change

2025 256.500 34,43 %

2026 348.786 35,98 %

2027 416.262 19,35 %

2028 466.228 12 %

Year Net result Change

2024 149.521 30,59 %

2025 175.183 17,16 %

2026 249.076 42,18 %

2027 291.448 17,01 %

2028 331.370 13,7 %

Year Net debt CAPEX

2024 56.425 96.499

2025 81.744 150.625

2026 -164.020 114.626

2027 -283.983 187.751

2028 -460.879 115.735

Year Free cash flow Change

2024 174.729 70,41 %

2025 213.244 22,04 %

2026 141.205 -33,78 %

2027 313.998 122,37 %

2028 330.640 5,3 %

Year EBIT margin ROE

2024 5,41 % 8,4 %

2025 7,49 % 9,1 %

2026 9,81 % 12,24 %

2027 11,07 % 12,87 %

2028 11,79 % 13,12 %

Year Dividend Yield

2025 28 0,89 %

2026 32,75 0,8 %

2027 39,72 0,97 %

2028 44,54 1,09 %

Year P/E ratio PEG

2025 23.9x 1.4x

2026 22x 0.5x

2027 18.8x 1.1x

2028 16.5x 1.2x

Market value 5,473,392

Number of shares (in thousands) 1,335,299

Date of publication 28.04.2025

Maybe something for you too @Max095

Of course, I'm looking forward to your assessment again.

@PikaPika0105
@Klein-Anleger
@Get_Rich_or_Die_Tryin

What do you think of the chart @Multibagger
@TomTurboInvest

$6701 (-5,44 %)

Last Sunday, the Japanese Prime Minister achieved the best election result ever for her party. Her party received almost 70% (!!!) of the vote, which, with the exception of constitutional amendments, gives her the power to "rule through". If you were to translate the election result (just for fun) into the German party system, the CDU, FDP and AfD would have received around 90% of the vote and all left-wing parties together around 10% 😂

The Japanese benchmark index Nikkei 225 then reached a new all-time high. It is assumed that the defense and tech industries will be strengthened under her government. It wants to create more national champions and at the same time prioritizes national sovereignty. However, tensions with China's communist dictatorship could increase as, unlike her predecessors, she clearly articulates Japan's interests to the Chinese, which they visibly dislike.

What her economic agenda will look like will probably become clear in the coming weeks to months, but I am convinced that the stock markets will benefit significantly. It will probably be a mixture of tax cuts and targeted industrial policy with a focus on high technology.

All in all, I think Japan has made the right decision to combine technology leadership, national sovereignty and security interests. They now have a strong and stable government for the next few years, from which I think we can expect a lot (also for our portfolio) :)

$7012 (+1,38 %)
$5801 (+4,68 %)
$8035 (+8,64 %)
$5344 (+3,08 %)
$9984 (+4,59 %)
$4063 (+6,9 %)
$6324 (+17,06 %)
$6702 (-1,68 %)
$6701 (-5,44 %)
$8306 (+3,16 %)

Hello dear Getquin Community,

After $ORCL (+0,12 %) Oracle caused quite a stir after the last quarterly figures and the market reacted extremely positively with a 40 percent increase in the share price, so much so that CEO Larry Ellison briefly became the richest person in the world overnight, I wanted to unravel the magic and find out exactly which division caused this tremor.

The answer is Cloud Infrastructure, or OCI for short. In this area, the demand for data centers for artificial intelligence has exploded, which has brought Oracle long-term orders worth 455 billion US dollars. However, it is not only Oracle that is benefiting, but also other hyperscalers, regional challengers and, above all, the so-called shovel manufacturers that provide the basic infrastructure.

I have taken the trouble to look for potential competitors and up-and-coming challengers so that you have a complete overview of this sector. I have divided the whole thing into the following segments: 🌍 Big players (hyperscalers), 💡 Hidden champions (selection by region), ⚒️ Shovel manufacturers (infrastructure suppliers) and, as always, my favorite.

If I have overlooked any important aspects or a classification was not entirely precise, I look forward to your comments and exciting additions. Together we can understand this topic even better and learn from each other.

Feel free to leave a 👍. I wish you every success with your investments 🚀

🌍 Big Player (Hyperscaler)

Amazon Web Services - $AMZN (+3,75 %) (USA, Nasdaq) → World market leader with >30 % market share, huge data centers & own AI chips (Trainium, Inferentia)

Microsoft Azure - $MSFT (-1,09 %) (USA, Nasdaq) → second largest provider, strong AI focus through OpenAI partnership

Google Cloud - $GOOGL (+3,67 %) (USA, Nasdaq) → third largest provider, specialized in AI workloads & big data

Oracle Cloud Infrastructure (OCI) - $ORCL (+0,12 %) (USA, NYSE) → Number 4 worldwide, currently fastest growth (+70-80 %), RPO USD 455 bn

Alibaba Cloud - $BABA (+0,72 %) , $9988 (+0 %) (China, NYSE/HKEX) → Market leader in Asia, complete cloud suite from IaaS to AI

Favorite: Oracle - $ORCL (+0,12 %)

Oracle impresses with its cloud infrastructure OCI, which recently collected orders worth 455 billion US dollars. The moat lies in the close integration of the database business and cloud services as well as the multi-cloud partnerships with Microsoft and Google. The compounder property is the result of long-term contracts and economies of scale in data center construction.

Alternative favorite: Alibaba Cloud - $BABA (+0,72 %) , $9988 (+0 %)

Alibaba is number one in Asia and number four worldwide. The moat lies in the close integration with Alibaba's e-commerce and fintech ecosystem. The compounder property stems from the enormous growth in emerging markets and the increasing demand for cloud services in China. While the stock is valued significantly cheaper than Oracle, there are geopolitical and regulatory risks.

💡 Hidden champions (selection by region)

🇪🇺 Europe

OVHcloud - $OVH (+0 %) PA (France) → largest European cloud provider, GDPR- and Gaia-X-focused

Scaleway - private (France, part of the Iliad Group) → Developer and AI cloud platform

T-Systems - part of $DTE (+1,32 %) DE (Deutsche Telekom, Germany) → Hybrid & Sovereign Cloud for Public Sector

IONOS - $IOS (-1,02 %) DE (Germany, Xetra)

Largest European web hosting and SME cloud provider. Burggraben: strong brand and high customer loyalty in the SME sector.

Aruba Cloud - private (Italy) → regionally strong in SMEs & hosting

Outscale - private (France, subsidiary of Dassault $DSY.PA) → Industrial Cloud & Simulation

Favorite: OVHcloud - $OVH (+0 %)

Burggraben: strong position as a GDPR-compliant sovereign cloud with Gaia-X. Compounder: increasing trust from authorities and companies ensures growing recurring revenues.

🇨🇳 China

Baidu AI Cloud - part of $BIDU (+4,05 %) , $9888 (+4,07 %) (Nasdaq, China/USA) → AI workloads, autonomous driving, language models

JD Cloud - part of $JD (+1,67 %) , $9618 (+1,67 %) (Nasdaq, China/USA) → Cloud for e-commerce & retail

Kingsoft Cloud - $KC (+0,78 %) , $3896 (-1,18 %) (Nasdaq, China/USA) → Gaming, streaming and app cloud

China Telecom Cloud - part of $728 HK (HKEX) → Infrastructure cloud, state-supported

China Mobile Cloud - part of $941 HK (HKEX) → 5G edge cloud with telecom backbone

Favorite: Kingsoft Cloud - $KC (+0,78 %) , $3896 (-1,18 %)

Moat: Specializing in gaming, streaming and mobile apps with deep integrations into ecosystems. Compounder: benefits from China's growing online consumption and strong embedding in the Tencent environment.

🇯🇵 Japan

NTT Communications - part of $9432 (+2,17 %) T (Tokyo) → Enterprise cloud with global network

NEC Cloud - $6701 (-5,44 %) T (Tokyo) → Government & security solutions

Fujitsu Cloud K5 - $6702 (-1,68 %) T (Tokyo) → Hybrid cloud for large companies

Rakuten Symphony Cloud - part of $4755 (+0,39 %) T (Tokyo) → 5G & telecom cloud

IIJ Cloud - $3774 (+4,83 %) T (Tokyo) → Cloud pioneer for enterprise IT

Favorite: NTT - $9432 (+2,17 %)

Moat: global telecom backbone and huge enterprise customer base. Compounder: expansion of data centers in Asia and Europe with stable recurring revenues.

🇮🇳 India

Reliance Jio Cloud - part of $RELIANCE NS (NSE India) → Telecom Cloud, partnership with Azure

Tata Communications IZO - $TATACOMM NS (NSE India) → Hybrid cloud & global backbone

Infosys Cobalt - $INFY (NYSE/NSE India) → Cloud migration platform & consulting

HCLTech Cloud - $HCLTECH NS (NSE India) → AI-powered hybrid cloud

Wipro Cloud Studio - $WIPRO NS (NSE India) → MultiCloud service provider

Favorite: Tata Communications - $TATACOMM

Moat: global fiber optic network and deep networking in hybrid cloud. Compounder: growing international expansion and increasing demand for multi-cloud solutions.

🌏 Asia / Oceania

Naver Cloud - part of $035420 KQ (Korea KOSDAQ) → AI & gaming cloud

Samsung SDS Cloud - $018260 , $SMSN (+0,62 %) KQ (Korea KOSDAQ) → Enterprise & IoT Cloud

KT Cloud - part of $030200 KQ (Korea KOSDAQ) → Telecom & Edge Cloud with 5G

Telstra Cloud - $TLS (+1,83 %) AX (Australia) → Telecom Cloud, Asia-Pacific focus

Macquarie Telecom Cloud - $MAQ AX (Australia) → Public Sector & Compliance

Favorite: Naver Cloud - $035420

Moat: strong integration of AI and gaming in Korea. Compounder: rapid scaling due to growing demand for AI and ML applications.

🌍 Latin America

UOL Diveo (Compasso UOL) - private (Brazil) → Cloud + Managed Services

Tivit Cloud - private (Brazil) → MultiCloud for industry & banks

Locaweb Cloud - $LWSA3 SA (Brazil) → SME Hosting & Cloud

Claro Cloud - part of $AMX (+0,89 %) (Mexico, NYSE/HKEX) → Telecom Cloud in Latin America

DesireCloud - private (Chile/Peru) → Local provider for companies

Favorite: Locaweb - $LWSA3

moat: Market leader for SME cloud and hosting in Brazil. Compounder: enormous scalability through the digitalization of small and medium-sized enterprises throughout Latin America.

🇨🇦 Canada

OVHcloud Canada - part of $OVH (+0 %) PA (France) → Data centers for North America

SherWeb - private (Quebec) → Cloud and MSP services for SMEs

HostPapa - private (Canada) → SME cloud solutions

Canadian Web Hosting - private (Canada) → Cloud & hosting with a focus on data protection

Beanfield Cloud - private (Toronto) → Cloud combined with fiber optic infrastructure

Favorite: SherWeb - private

Moat: close ties to SMEs via managed services. Compounder: fast-growing cloud ecosystem for small businesses in North America, high customer loyalty.

⚒️ Blade manufacturers (infrastructure suppliers)

🖥️ Semiconductors & Chips

Nvidia - $NVDA (-4,24 %) (USA, Nasdaq) → GPUs for AI training & cloud

AMD - $AMD (+5,54 %) (USA, Nasdaq) → CPUs/GPUs for Data Center

Intel - $INTC (-0,27 %) (USA, Nasdaq) → Server CPUs & AI accelerators (Gaudi)

TSMC - $TSM (+0,83 %) (Taiwan, NYSE/TWSE) → largest chip manufacturer, produces for NVIDIA/AMD

Samsung Electronics - $SMSN (+0,62 %) KQ (Korea) → Memory, foundry, GPUs/CPUs

Favorite: Nvidia - $NVDA (-4,24 %)

Moat: near monopoly in high-end GPUs for AI. Compounder: Ecosystem and network effects through CUDA and developer community.

📦 Data center hardware & servers

Supermicro - $SMCI (+3,98 %) (USA, Nasdaq) → GPU clusters & AI servers

Dell Technologies - $DELL (+1,34 %) (USA, NYSE) → Enterprise Servers & Storage

Hewlett Packard Enterprise - $HPE (+1,62 %) (USA, NYSE) → Hybrid Cloud & Edge

Inspur - private (China) → AI & Cloud Server

Lenovo - $LNVGY (+0 %) (China/ADR) → HPC and AI servers

Favorite: Supermicro - $SMCI (+3,98 %)

Moat: Specialization in GPU clusters and AI servers. Compounder: benefits from every expansion of the hyperscalers, extremely high scalability.

⚡ Memory & network chips

Micron - $MU (-2,19 %) (USA, Nasdaq) → DRAM & HBM memory

SK Hynix - $HY9H (+0,4 %) KQ (Korea) → Memory chips, HBM for NVIDIA

Broadcom - $AVGO (+0,49 %) (USA, Nasdaq) → Network Chips & Switches

Marvell - $MRVL (+6,15 %) (USA, Nasdaq) → Network & 5G chips

ASE Technology - $ASX (+1,52 %) (Taiwan, NYSE) → Packaging for high-end chips

Favorite: Broadcom - $AVGO (+0,49 %)

Moat: deep roots in network infrastructure of hyperscalers. Compounder: benefits from rising demand for switches and custom chips for the cloud.

🏭 Data centers / colocation

Equinix - $EQIX (+4,15 %) (USA, Nasdaq) → largest colocation provider worldwide

Digital Realty - $DLR (+2,7 %) (USA, NYSE) → Data centers worldwide, strong in Europe/USA

China Telecom DC - part of $728 HK (HKEX) → Data center infrastructure in China

NTT Data Centers - part of $9432 (+2,17 %) T (Tokyo) → Data centers in Asia/Europe

NEXTDC - $NXT (+2,4 %) AX (Australia) → Growing data centers in the APAC region

Favorite: Equinix - $EQIX (+4,15 %)

Moat: global networking and extremely high switching costs for customers. Compounder: continuous expansion and cross-selling potential through platform structure.

🔋 Energy & cooling

Schneider Electric - $SU (-0,06 %) PA (France, Euronext) → Power & Cooling for Data Center

ABB - $ABBN (+3,75 %) (Switzerland, SIX/NYSE ADR) → Energy & Automation

Siemens Energy - $ENR (+3,17 %) (Germany, Xetra) → Power Grids & Data Center Technology

Vertiv - $VRT (+7,17 %) (USA, NYSE) → Cooling, Racks & UPSs

Eaton - $ETN (+5,31 %) (Ireland/USA, NYSE) → Power Management

Favorite: Schneider Electric - $SU (-0,06 %)

Burggraben: market-leading energy and cooling systems for data centers. Compounder: long-term growth due to increasing demand for efficient data centers.

🌐 Network & Connectivity

Cisco - $CSCO (+2,31 %) (USA, Nasdaq) → Router & Network Hardware

Arista Networks - $ANET (+1,71 %) (USA, NYSE) → High-speed switches for hyperscalers

Juniper Networks - Acquisition by $HPE (+1,62 %) Hewlett Packard HP (USA, NYSE) → Routing & Network Security

Ciena - $CIEN (+10,3 %) (USA, NYSE) → Fiber Optics & Optical Networks

Nokia - $NOK (+2,79 %) (Finland, NYSE/Helsinki) → 5G & Core Networks

Favorite: Arista Networks - $ANET (+1,71 %)

Moat: technological leadership in high-speed switches in hyperscaler data centers. Compounder: enormous growth opportunities due to exponential data traffic in AI workloads.

✨ Takeaway

The Oracle quake shows: Cloud & AI are the growth drivers of the coming years. While hyperscalers are in the spotlight, hidden champions are growing in their niches in the background and blade manufacturers are making money from every expansion of the infrastructure.

👉 Question for you: Do you prefer to focus on hyperscalers in your strategy? hyperscalersthe hidden champions or directly on the shovel manufacturers?

I look forward to your opinions!

Source: own analysis

Image - Image credit: Getty Images

Today I would like to introduce you to a technology that is one of the greatest technological revolution since the invention of the Internet. The project is being led by the company Nippon Telegraph and Telephone Corporation (NTT) $9432 (+2,17 %)a company that could be described as the Deutsche Telekom $DTE (+1,32 %) of Japan. From the outside, it seems like a boring quality company, dividend share, safe haven.... But it is much more than that!

Our society is slowly but surely moving towards the AI age. Everything and everyone is connected. However, this also brings problems, because AI requires electricity, a great deal of electricity. It is currently assumed that in the future, an ever-increasing percentage of our electricity production will only be needed for data centers. This costs money and, in most cases, damages the environment on top of that.

This is the reason why NTT has launched the IOWN project (Innovative Optical and Wireless Network) into being. In the meantime, the project has developed into a global initiative with NTT as the initiator, important direct partners such as Intel
$INTC (-0,27 %), Sony
$6758 (+1,01 %), NEC $6701 (-5,44 %) and Fujitsu $6702 (-1,68 %)as well as dozens of other partner companies (Google $GOOGL (+3,67 %)Amazon $AMZN (+3,75 %) , SoftBank $9984 (+4,59 %)....).

What is IOWN about?

Today's network technology, which is based on electricity, is to be fundamentally rethought. Instead of electricity, networks with photons (light) operated. This technology will be used in mobile networks, data centers, industry and much more. The APN (All Photonic Network) is currently undergoing intensive testing and expansion.

NTT: "IOWN technologies are expected to reduce energy consumption by 100-fold transmission capacity by a factor of 125 times and increase end-to-end latency (≈delay) by a factor of 200-fold times."

Here is another typical Japanese graphic, detailed but confusing:

The introduction of IOWN technologies would thus solve the biggest problem of our digital society, energy consumption. Not only that, it would also surpass all current network technologies in terms of speed and capacity and capacity many times over. Today's technology is not able to outperform the APN. IOWN represents a technological revolution with a disruptive character an innovation that would be so groundbreaking that anyone who does not adapt it would be at a competitive disadvantage. And IOWN is not science fiction, it is already a reality.

For example, the first international APN was put into operation at the end of last year. In cooperation with Chunghwa Telecom $CHT (Taiwan's largest telecommunications group), stable communication over a distance of 3000km with 0.017sec delay was made possible.

Telecommunications is just one of many applications. The link with AI and quantum computers is also being intensively developed. The government is also supporting the project with appropriate regulatory support and subsidies.

The latest news can be followed on NTT's Research & Development website: https://group.ntt/en/rd/

To the NTT share:

The NTT share currently stands at a P/E RATIO 11so it will by no means trading at a premium with regard to IOWN. The core business is very stable (telecoms), which is why the risk is virtually non-existent. Even though IOWN is now a global project, NTT is still at the forefront of the project and holds the most important patents. most important patents APN technology and will therefore also be its biggest profiteer. IOWN technology is very complex and therefore very difficult to copy. There is also no real competition for NTT in this area. However, we will have to be patient a little longer before IOWN is rolled out on a large scale. Until
2030 further commercial applications are to be developed and projects in Japan are to be driven forward. From 2030 IOWN technology will then be rolled out globally. The global adaptation of IOWN technology would also involve high initial costs for setting up the new infrastructure, although this would be offset by the negligible energy requirements in the application. In addition, companies and countries that do not rely on IOWN due to its technological superiority would suffer a competitive disadvantage.

Conclusion:

NTT could trigger a new technological revolution with the IOWN initiative they are leading. The technological superiority over today's systems is impressive. The next 5-10 years will show whether the future will run on photonic networks. Even though IOWN has the potential to be a true revolution, NTT would already call it a mini-revolution. as an initiator and technology supplier. As the share is massively undervalued in view of the potential massively undervalued I consider the purchase to be a no-brainer. All we need to do now is be patient and follow current developments!

Not investment advice, of course 🥴

Do you think Germany will reach 50% fiber optics by the time the world switches to APN? 🤪