Sentiment for artificial intelligence (AI) continues to run red-hot, this time positively impacting Malaysia-based multi-disciplinary consulting group VCI Global (NASDAQ:VCIG). Focusing on the areas of business and technology, VCI provides boardroom strategy services for small and medium-sized enterprises and government-linked agencies. Announced earlier today, its partnership with Microsoft (NASDAQ:MSFT) sent VCIG stock soaring. Even better, the upswing isn’t purely based on gambling behaviors.
According to the accompanying press release, VCI has teamed up with the technology giant’s Azure cloud platform. “Harnessing on the respective parties’ AI-powered innovative expertise, this partnership sculps the future of business solutions by revolutionising [sic] the tech landscape through the application of Microsoft Azure OpenAI services,” the statement read in part.
Under the collaborative effort, VCI believes that Azure OpenAI will enhance the Malaysian firm’s consulting capabilities. Specifically, VCI looks forward to game-changing solutions through tools such as Generative Pre-trained Transformer 4 (GPT-4) and Microsoft’s new AI-powered chatbot, Bing Chat Enterprise.
In addition, VCI will capitalize on Azure OpenAI’s “cutting edge AI technology for its current and new projects which include the robosale software which is an all in one fully automated AI-assisted sales platform.”
VCIG Stock Jumps on a Potentially Promising Outlook
Immediately following the AI-inspired announcement, VCIG stock jumped 80%. However, sentiment continued to build during the early afternoon hours. At the time of writing, an intra-session rally drove shares to 120% up.
“We are ecstatic for this partnership to be up and running as we look forward to transforming how companies engage customers in the dynamic tech landscape where the level of transformation can only be limited by our imagination and creativity,” enthused VCI’s Executive Chairman and CEO Dato’ Victor Hoo.
On the surface level, VCIG stock might not seem that promising. Based on the underlying company’s Form 20-F filed with the U.S. Securities and Exchange Commission (SEC), VCI printed total revenue of just over $8 million in 2022. Conspicuously, this tally represented a year-over-year loss of 25%.
At the same time, operating income came in at $3.12 million, and net income clocked in at $4.61 million, benefitting from a favorable tax provision that year. What’s more, management explained that the revenue decline stemmed mainly because the enterprise was focused on its initial public offering (IPO).
Further, VCI inked most of its new deals only in the final quarter of last year. Moving forward, the aforementioned deals should contribute to the company’s current-year sales.
Why It Matters
At the moment, VCIG stock carries a market capitalization of a bit over $268 million. However, with Next Move Strategy Consulting forecasting that the global AI market could hit nearly $2 trillion by 2030, VCI may tap into a massive total addressable market.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
