Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Sakura Internet, a Japanese cloud provider, has seen a significant surge in stock price and market capitalization due to entry into AI cloud services.</li>
<li>The company plans to invest in NVIDIA H100 GPUs for AI servers, expecting substantial demand but with uncertain revenue and profitability projections.</li>
<li>Risks include concentrated ownership, lack of analyst coverage, potential shareholder pressure, and competition from larger cloud providers like AWS with advanced AI computing capabilities.</li>
</ul>


Sakura Internet, a Japanese cloud provider, has seen a significant surge in stock price and market capitalization due to entry into AI cloud services.
The company plans to invest in NVIDIA H100 GPUs for AI servers, expecting substantial demand but with uncertain revenue and profitability projections.
Risks include concentrated ownership, lack of analyst coverage, potential shareholder pressure, and competition from larger cloud providers like AWS with advanced AI computing capabilities.


Sakura Internet (3778) | Blossoming in the Cloud?

<ul>
<li>The share price of Sakura Internet has risen by over 500%, adding Y230 billion in market cap, since investors began pricing in the AI opportunity</li>
<li>We use pricing data from Amazon AWS to model the revenue opportunity for Sakura’s GPU AI-cloud</li>
<li>We estimate that 2,500 H100 GPUs could yield an equity value of Y49 billion, far less than the value the market has ascribed</li>
</ul>


The share price of Sakura Internet has risen by over 500%, adding Y230 billion in market cap, since investors began pricing in the AI opportunity
We use pricing data from Amazon AWS to model the revenue opportunity for Sakura’s GPU AI-cloud
We estimate that 2,500 H100 GPUs could yield an equity value of Y49 billion, far less than the value the market has ascribed


Sakura Internet (3778) | Estimating the Value of 2,500 GPUs

Japan

SAKURA internet Inc. provides comprehensive Internet service to businesses. The Company operates a data center and leases space to store clients' servers and network equipment.  Sakura Internet also offers web hosting and Internet connectivity services.

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Sakura internet (3778 JP)

Sakura Internet (3778) | Blossoming in the Cloud?

Japanese cloud provider Sakura Internet's stock price rise as they enter AI cloud services, planning to invest in NVIDIA H100 GPUs. It is a highly...

Mark Chadwick

Sakura Internet (3778) | Estimating the Value of 2,500 GPUs

Sakura Internet's share price soars over 500% on AI opportunity, but revenue potential for GPU AI-cloud falls short of market valuation.

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sakura Internet (3778) | Blossoming in the Cloud?

​Japanese cloud provider Sakura Internet's stock price rise as they enter AI cloud services, planning to invest in NVIDIA H100 GPUs. It is a highly...

Mark Chadwick

Sakura Internet (3778) | Estimating the Value of 2,500 GPUs

​Sakura Internet's share price soars over 500% on AI opportunity, but revenue potential for GPU AI-cloud falls short of market valuation.

Mark Chadwick

Japanese cloud provider Sakura Internet's stock price rise as they enter AI cloud services, planning to invest in NVIDIA H100 GPUs. It is a highly...

Sakura Internet's share price soars over 500% on AI opportunity, but revenue potential for GPU AI-cloud falls short of market valuation.