South Korean circuit board maker, Isu Petasys Co., has experienced a surge in its share price, skyrocketing by 487% this year. With tech giants like Alphabet Inc., Nvidia Corp., and Microsoft Corp. among its customers, Isu Petasys is cashing in on the soaring demand for artificial intelligence (AI) investments. This impressive growth has not only made Chairman Kim Sang-Beom and his family the beneficiaries of enormous wealth, with the value of their stakes exceeding $800 million as of August 3, but it also highlights the significant potential for AI-related companies in the market.
Isu Petasys, which was founded in 1972, initially focused on distributing printed circuit boards primarily for hard disk drives. However, in recent years, the company has tapped into the AI trend, expanding its customer base to include major players in the technology industry. Park Hyung-woo, an analyst at SK Securities Co., explains that Isu Petasys diversified its clientele from telecommunications manufacturers to top technology companies like Alphabet and Nvidia. The company’s commitment to providing high-quality multilayered boards for AI accelerators has resulted in a substantial increase in orders, with sales for these boards jumping nearly eight-fold to $36.4 million in the first quarter.
While Isu Petasys’s revenue grew by 3.9% to $172 billion in the first three months of 2021 compared to the previous quarter, its operating profits saw a decline of 33%, reaching $20.2 billion. However, experts maintain an optimistic outlook for the company due to the growing portion of its revenue coming from AI-related sales. Analyst Baik Gil-hyun suggests that Isu Petasys’s role as a supplier to major AI companies sets it apart from other local firms. Moreover, SK Securities’ Park predicts that AI-related business could account for 20% of the company’s revenue this year and even surpass 30% by 2024.
The escalating tensions between the United States and China have also played a role in Isu Petasys’s expansion, as US companies prefer non-Chinese suppliers. In this regard, the company’s success is not only attributed to the flourishing AI market but also to geopolitical factors that have influenced supply chain preferences.
The case of Isu Petasys reflects the broader trend of AI investments driving substantial wealth creation. Jensen Huang, the CEO of Nvidia, has witnessed his fortune nearly triple to $39.9 billion within a year. These developments signal a promising future for Isu Petasys and similar companies operating in the AI space. As the AI boom shows no signs of slowing down, Isu Petasys is poised to ride the wave and continue its impressive growth trajectory.
In conclusion, the South Korean circuit board manufacturer Isu Petasys has experienced a remarkable surge in its stock price this year, fueled by the booming demand for AI investments. Chairman Kim Sang-Beom and his family have seen their wealth soar as a result. Isu Petasys’s expansion into the AI market and its partnerships with tech giants position the company for continued success. With its commitment to providing cutting-edge solutions for AI accelerators, Isu Petasys stands to benefit from the ongoing AI revolution and is well-positioned for future growth.
