"I seriously wonder which one of these companies will capture the biggest slice of the AI pie.A few years from now I’ll be looking at their slice compared with the one your secretly in awe of".
I'm not in awe of any one particular company. The Edge AI space is growing quickly, is very dynamic and ferociously competitive.
The chances are many of the companies trying to break through in this space will fail. Despite what the uprampers/traders might try and convince you of, BRN is not immune to the possibility of failure.
Risks include:
- BRN cannot gain enough traction to justify a (currently) $1.9 billion market cap. Think of the sustained earnings that would be needed to justify such a market cap - The Akida technology is not mature or robust enough to be a commercial success - A new and better technology comes along that is superior in most/all respects and relegates Akida to the "has been" basket
The difference is BRN seems to have baked into its share price/market cap a very high likelihood of success.
Comparison
Compare BRN to one its competitors, Syntiant. As I mentioned previously, Syntiant is a private company so some of the following figures are speculative and must be treated as such. Regardless, it's still instructive to look at them. Please correct me if I have made any errors.
- Syntiant has been estimated as having revenue of US$ 26.9 million a year (see here). Syntiant raised US$55 million this year (Renesas being one of the investors) and also announced they have shipped more than 20 million of its chips (see here). - Syntiant's current valuation (as of March 2022) has been estimated at between US$ 220-330 million (see here). (compare with BRN's market cap of US $1.33 billion) - In other words, Syntiant are estimated to have significantly more revenue than BRN and a significantly lower valuation. - If BRN was valued the same as Syntiant's valuation upper estimate, the BRN share price would be roughly $0.27
What does this say about BRN's current share price?
BRN Price at posting:
$1.09 Sentiment: None Disclosure: Not Held
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