FPT shares traded explosively, surpassing historical peaks after the news of “joining hands” with Nvidia to open an AI factory

After a few corrections, FPT stock quickly regained its form with a strong recent increase. Especially in the April 24 session, the leading stock in the technology industry broke out 5% to 118,000 VND/share (as of 10:30 a.m.), thereby surpassing its historical peak. The corresponding market capitalization increased by approximately 10,000 billion VND after one session to nearly 150,000 billion VND (~5.8 billion USD).

Notably, FPT shares surpassed their peak and were trading very actively. The matched volume in the morning half of the session reached more than 3.6 million units, exceeding the average liquidity in the last 10 sessions.

The positive increase of the stock took place after the news that FPT Group and Nvidia Group “joined hands” to build an artificial intelligence factory.

Specifically, on April 23, FPT and Nvidia signed a comprehensive strategic cooperation agreement to promote artificial intelligence (AI) research. The two sides plan to build an artificial intelligence factory (AI Factory), train high-quality human resources and become service development partners in Nvidia’s partner network.

According to the memorandum of understanding, FPT plans to invest 200 million USD to build AI Factory to provide a cloud computing platform for AI research and development and sovereignty in Vietnam. The factory includes supercomputer systems operating on Nvidia’s latest technology.

The factory is assessed to contribute to improving Vietnam’s ability to provide high-tech solutions in AI and cloud on a global scale, while enhancing technology human resources. “We are committed to bringing Vietnam become the world’s AI development center,” Mr. Truong Gia Binh, Chairman of FPT, affirmed at the signing ceremony.

In a recent sharing, Mr. Do Cao Bao, Member of the Board of Directors of FPT Corporation, said that Nvidia is the master of the global AI game, with the world’s largest AI ecosystem, the beating heart of the super cycle. In the AI ​​era, many of the world’s technology giants are having to wait 18 months to receive Nvidia’s AI GPU chips. Not everyone who wants to buy Nvidia also sells, they only choose partners to participate in the global AI ecosystem, and FPT is a rare domestic enterprise that Nvidia chooses to cooperate and support.

In addition to receiving positive supporting information, FPT’s upward momentum was reinforced by positive business results in the first quarter. FPT recorded first quarter net revenue of 14,093 billion VND and pre-tax profit of 2,534 billion VND, increased by 21% and 19% respectively over the same period. Net profit increased 20% to VND 1,798 billion and is also the highest quarterly profit in FPT’s operating history.

The company said that Q1 growth was mainly due to the growth of the technology sector, including domestic information technology services and foreign information technology services. Accordingly, this block accounts for 60% of revenue and 45% of pre-tax profit, contributing VND 8,472 billion and VND 1,155 billion, respectively.

Of which, the foreign information technology services segment contributed VND 6,999 billion in revenue and VND 1,115 billion in pre-tax profit, up 28% and 26% respectively over the same period, thanks to key markets maintaining momentum. High growth like Japan (+44.2%) comes from the need to spend heavily on information technology, especially spending on digital transformation.

In 2024, FPT sets a revenue target of 61,850 billion VND (~2.5 billion USD) and pre-tax profit of 10,875 billion VND, both an increase of about 18% compared to the results achieved in 2023. With the following results achieved In the first 3 months of the year, the leading technology company has implemented about 23% of its plan.