SES AI (SES, Financial) stock surged 11.3% after the company announced ambitious plans to leverage AI in developing advanced rechargeable batteries for electric vehicles. The stock also benefited from SES AI's collaboration with Nvidia and Super Micro Computer on this innovative project.
SES AI, currently valued at approximately $378.85 million, is a global leader in high-performance Li-Metal batteries. The company's latest initiative aims to expedite material discovery for electric transportation by utilizing a supercomputer optimized for AI to map the universe of small molecules.
The project will employ the "Crusoe Cloud" AI platform, powered by NVIDIA HGX H100 GPU clusters and running on Supermicro servers. This platform will help create a detailed database of small molecules, which are potential components for lithium batteries. SES AI intends to build a large language model (LLM) to suggest and test various molecule structures to enhance battery performance.
Despite these advancements, it's important to examine SES AI's current financial standing. The company has a price-to-book ratio (P/B) of 1.14, indicating it is trading at a slight premium relative to its book value. However, its Piotroski F-Score is low at 2, indicating weak business operation. Additionally, the company has experienced significant insider selling, with no insider buys in the past three months. On the positive side, SES AI has a comfortable interest coverage ratio, suggesting it has enough cash to cover all its debt, indicating financial stability.
For those interested in the valuation, SES AI's GF Value can be explored in more detail on GuruFocus's GF Value page.
Overall, SES AI's new project represents a significant step in battery innovation, supported by strong partnerships and advanced technology. Investors should weigh these developments alongside the company's financial metrics to make informed decisions.
