Why Cray Makes Sense In 2018

Nov. 15, 2017 3:28 PM ETCray Inc. (CRAY), HPENVDA, STX
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If you have any questions about my research or any data related to my blogs, just inquire about them via comment. I am a 24 year old University of Pittsburgh Alumni with a BSBA in Finance, Minor in Economics, and FMVA from the Corporate Finance Institute. I also have several certificates from Ivy League Universities such as, Yale, Columbia, and Penn. From Penn, I studied Corporate Finance and Accounting. From Yale, I studied Financial Markets with Robert Shiller and the Global Financial Crisis with Timothy Geithner. I am also a holder of the Bloomberg Market Concepts (BMC) Education Certificate.


Today, I build database models in R & algorithmic trading models in Python. My specialties include portfolio creation and optimization, as well as, portfolio stress testing.

From a purely strategic perspective, I have been studying the pharmaceutical industry for over 8 years. Particularly, I have invested in the top performing biopharmaceutical industry and continue to do so via buy & hold strategy. I am also interested in investments related to the biotechnology and life science sectors, but may speak to the economy as a whole in some articles as well. Otherwise, I am an equity options trader known for predicting a 1987 like market crash before the 2020 election in late September of 2019 (read below). I am also known for long-term calling volatility indexes in late February before the March 2020 stock market rout.

Summary

  • Supercomputing is essential in the decision making process at large cap tech firms like Microsoft & Samsung.
  • R&D is cheaper with supercomputers.
  • More computing power is necessary as data centers continually reach new data milestones.

In the last few months alone, Cray Inc. has publicly released details on over 21 new deals that they were pursuing & closed going into the future. Just yesterday, Cray announced they closed a deal with Samsung, where Samsung will pay Cray to assist them via their purchase of a CS-Storm 500NX system which is a deep learning AI computer.

Chart
CRAY data by YCharts

First off, Cray's Nvidia (NVDA) powered AI systems are selling like hot cakes, showing double digit sales growth this coming year. Now Cray is moving forward with new products powered by Cavium's 64-bit processors, which could open up even more international markets to their sales channel. Also, Cray has recently announced more new products associated with their acquisition of Seagate's (STX) Cluster Stor business.

Moreover, Cray has been working with Microsoft's Azure to enable supercomputing tools in the cloud. Collaborations with large cap tech companies, like Microsoft and Samsung, are very good signs for this company. Along with collaborations from tech companies, universities in Japan and Korea have decided to purchase Cray products in 2018. Finally, Cray has been awarded 4 High Performance Computing (HPC) awards, and still is not matched in supercomputing nationally. Their versatility in what their systems can perform from analytics, to deep learning and AI, make Cray a great investment moving into the future. 

Disclosure: I am/we are long CRAY.

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