Before we begin understanding buzz around E2E Networks, lets first understand the cloud Graphics processing unit (GPU) ecosystem and big players using a simple diagram
At the top of food chain are GPU manufacturers - NVIDIA and others they manufacture GPUs
then we have companies who provide key physical and digital infrastructure providers like Equinix in US and Anantraj in India
Cloud Service providers (CSP) offer GPU computing resources as a service to customers - AWS, Google Cloud and Azure are main players , E2E networks is also a CSP
Software Developers across on customer side, on CSP and as Independent entity create machine learning frameworks
Customers: Various industries and organisations that use cloud GPU services, including AI/ML companies, research institutions, start ups, media & entertainment, and financial services etc
A key thing to note major cloud providers such as Amazon Web Services, Google Cloud,Microsoft Azure, IBM Cloud, and Alibaba Cloud do everything except GPU manufacturing
For an end customer which it is often better to just use CSPs rather than managing and deploying the GPU hardware themselves.
Indian companies are set to rapidly invest in cloud computing at an accelerated pace over the next 4-5 years. Below are growth projections from IDC
Reason is huge computing needs for AI, as adoption of AI and GenAI tools accelerates, especially in the IaaS and PaaS categories, driven by enterprises needing more cloud resources for training AI models and running advanced cloud-native applications
Backbone of all such set up is NVIDIA’s most advanced chip The NVIDIA H100 - one of the most advanced GPUs in the world, particularly for AI, deep learning, and HPC workloads. Its cutting-edge Hopper architecture, Transformer Engine, Multi-Instance GPU (MIG) support, and industry-leading performance make it the top choice for organizations looking to push the boundaries of AI and high-performance computing
E2E network have a good installed capacity and ramp plans
Nearly 450 H100(s) deployed on our Cloud GPU platform till June 2024, Nearly
250 H100(s) planned to be deployed on the Cloud GPU Platform in July 20241
To provide you context the Omdia, a market tracking company, believes that Meta and Microsoft are the largest purchasers of Nvidia's H100 GPUs. They procured as many as 150,000 H100 GPUs each2
So there should be no challenges from a supply side for E2E Networks from NVIDIA
Why Hype?
Massive fund raise3 which is ~4 times there last year’s revenues
Presence of one of the best investors in India - Mr Ashish Kacholia as a subscriber to the fund raise
Eligible to receive government orders4
Stock performance 10X in last one year
Is hype justified?
The company is growing very fast it is likely to do revenues of ~300 crores of revenue by March 2026 with potential to do ~750 to 800 crores revenue in March 2027
Number of customers served has doubled to almost ~5000 in last 1 year
Industry is having significant tail winds
Promoters participated in fund raise
Smaller cap company with no major mutual fund ownership
Am I am invested?
No but closely tracking (with 1 share ownership) there execution, Get a gem daily on whatsapp
https://nsearchives.nseindia.com/corporate/E2E_19072024003353_InvestorPrsentationJuly2024.pdf
https://nsearchives.nseindia.com/corporate/E2E_20082024234119_PressRelease.pdf
https://nsearchives.nseindia.com/corporate/E2E_19062024172331_PressReleaseSigned.pdf