Deepnoid is showing strong performance. This is a result of increased expectations for the artificial intelligence (AI) industry following U.S. semiconductor company Nvidia's announcement of second-quarter earnings forecasts that exceeded market expectations.
As of 9:54 a.m. on the 25th, Deepnoid is trading at 10,050 KRW, up 5.02% from the previous day.
Nvidia announced that its second-quarter revenue this year is expected to reach $11 billion, more than 50% above the market expectation of $7.15 billion. As a developer of graphics processing units (GPUs), Nvidia currently supplies more than 90% of the semiconductors used worldwide for AI development. Demand is increasing for graphic chips to power generative AI and large language models.
As Nvidia proves the rapid growth of the AI industry, interest in related companies is growing.
Founded in 2008, Deepnoid is the only platform-based medical AI company in Korea. It operates a medical AI business developing solutions ranging from medical diagnosis and reading assistance to early disease detection. Its main products include the medical AI solution and medical device 'DEEP:AI' and three efficiency tools used in the solution development process: 'DEEP:PHI,' 'DEEP:STORE,' and 'DEEP:PACS.'
Jae-yoon Kim, a researcher at the Korea IR Association, introduced, "Deepnoid is engaged in a pipeline business that directly leads the development of medical AI solutions and a platform business led by medical professionals."
He added, "The AI image reading solution DEEP:AI currently has a total of 17 major disease-specific product lineups approved by the Ministry of Food and Drug Safety," and analyzed, "These 17 diseases include various major conditions such as cerebrovascular disease, lung disease, spinal disease, chest disease, breast disease, and fractures."
He explained, "DEEP:PHI is a development tool that allows easy development of DEEP:AI and continuous operation up to advanced stages if necessary," and "It enables medical professionals who possess medical data to create AI models themselves." Furthermore, he emphasized, "DEEP:PHI provides an intuitive GUI and cloud environment to enable AI development without coding," and "The number of DEEP:PHI users rapidly increased from 460 at the end of 2021 to 2,215 at the end of 2022."
He continued, "The core technology of the DEEP:PHI development tool is AI's ability to interpret images and videos according to user-defined logic," and added, "Deepnoid's AI image reading technology has the advantage of being expandable from medical use to various industries." Deepnoid supplied an AI vision quality inspection system for reagent bottle quality inspection to LG Chem. It is also understood to have supplied AI solutions to major domestic display manufacturers. Researcher Kim expects applications in various fields such as IT, automotive, secondary batteries, logistics, and materials.
Researcher Kim estimated, "Assuming the current cost structure is maintained, Deepnoid's break-even point (BEP) sales are estimated to be around 10 billion KRW," and predicted, "Considering the trend of increasing orders, sales will reach 11.1 billion KRW next year, and operating profit will turn positive."
He added, "The expectation of high growth after 2025 is advantageous for long-term investment," and explained, "The current stock price is more than 50% lower than the initial public offering price at the time of listing in 2021."
The global AI healthcare industry is still in its early stages. Market research firm Markets And Markets forecasts that the AI healthcare market will grow from $6.9 billion in 2021 to $67.4 billion by 2027, with a compound annual growth rate of 46.2%.
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