China-based Canaan (NASDAQ:CAN) is thought for growing and manufacturing machines to mine for Bitcoin (CCC:BTC-USD). Knowing this, some cryptocurrency bulls may resolve to take a lengthy place in CAN inventory.
Source: shutterstock.com/Jarretera
That’s comprehensible. However, I need buyers to see the larger image earlier than shopping for this inventory.
Sure, Canaan is certainly a premier supplier of cryptocurrency mining rigs. But it’s essential to know that there’s extra to the corporate than crypto-mining gear. With CAN inventory, there’s additionally the bogus intelligence (AI) angle, which could be fairly worthwhile.
Thus, there’s multiple cause to put money into Canaan at present. Plus, as we’ll see, the shares occur to be buying and selling at a good low cost proper now.
CAN Stock at a Glance
Don’t get me fallacious — CAN inventory wasn’t at all times low cost. In actuality, it virtually went vertical not way back.
Let’s rewind the clock a bit. At the top of January 2021, Canaan shares had been buying and selling for round $5 apiece. In different phrases, CAN inventory was technically categorised as a penny inventory — outlined by the U.S. Securities and Exchange Commission (SEC) as a inventory that trades under $5 per share.
So, clearly $5 was an essential resistance stage for the bulls to penetrate. And they definitely did that in March, in a dramatic trend.
This identify noticed a gorgeous rally, as consumers bid the CAN inventory value as excessive as $39.10 on Mar. 12. However, that turned out to be a topping course of and decrease costs promptly ensued.
Notably, although, Bitcoin didn’t peak till Apr. 14. So, there isn’t precisely a one-to-one correlation between Bitcoin and the Canaan share value.
In any case, CAN inventory not too long ago closed at $7.97 on May 21. This represents a main low cost in comparison with its earlier peak value. That means there needs to be room for the bulls to run, every time they’re prepared to take action.
Canaan Is an AI Innovator
We’ll speak about Bitcoin mining rigs in a second, however right here’s one thing that potential buyers ought to learn about Canaan. Like I discussed earlier than, this firm is an innovator within the machine-learning house. In 2018, Canaan launched K210, “the world’s first RISC- V-based edge AI chip.” According to the corporate, the K210 chip is “now extensively utilized in entry management, resembling good door locks.”
Now, you may say that 2018 was a very long time in the past and could surprise what Canaan is doing within the AI house at present. One current press release ought to reply that query to the satisfaction of any skeptic.
Reportedly, Canaan has entered a partnership to introduce a facial recognition module to the Japanese market. This module makes use of Canaan’s Kendryte K210 AI chip, which options a “small dimension and low energy consumption.” Moreover, the AI-powered chip was particularly designed for “processing machine imaginative and prescient duties, resembling facial and picture recognition, in addition to completely different areas of audio processing.”
Big-Time Crypto Mining Machine Orders
According to CEO Nangeng Zhang, this firm’s AI facial recognition module “has a recognition accuracy of greater than 99.6%.” So, we’re speaking about state-of-the-art gear right here. However, talking of state-of-the-art, let’s now pivot to Canaan’s different wheelhouse: Bitcoin mining machines.
As far as crypto tech goes for CAN inventory, the orders for the corporate’s machines appear to maintain on coming in — and we’re not simply speaking about a few. For occasion, Canaan not too long ago entered into a contract to offer 11,760 mining machines to an Australian firm. But it solely will get higher from there; on Apr. 28, Canaan disclosed a purchase order valued at as much as almost $94 million.
Could this be a signal of even larger buy orders to come back? Zhang not too long ago teased stakeholders with the prospect of aggressive worldwide enlargement efforts. The CEO commented:
“We are seeing larger curiosity from institutional gamers and the emergence of recent mining hotspots world wide in 2021. As such, to offer extra worth to our abroad buyer base, we’ve got established our first-ever after-sales service heart exterior of China.”
The Takeaway on CAN Stock
As we’ve seen, CAN inventory doesn’t comply with the Bitcoin value tick-for-tick. True, Canaan appears to be a top-notch supplier of Bitcoin mining machines, but it surely’s not restricted to that. It’s additionally an AI tech market competitor.
So, with the share value buying and selling at a vital low cost proper now, this may very well be the correct time to grab a possibility. Consider investing in Canaan at present.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily chargeable for this text held (both instantly or not directly) any positions within the securities talked about on this article.
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