Spire Global (NYSE:SPIR) is truly an intriguing company to look at. This subscription-focused data provider uses data from satellites and aircraft to provide predictive modeling and analytics for ship monitoring and predictive weather analytics, among other key functions. Today, SPIR stock is on the rise. The company announced its latest artificial intelligence (AI) integration, and investors seem to think it could be a big tailwind moving forward.
Spire Global announced a collaboration with Nvidia (NASDAQ:NVDA) to advance AI-driven weather predictions using its data set. This deal will utilize Nvidia-based APIs to accelerate climate predictions. That’s something that could provide an immediate benefit for Spire Global’s customer base.
Accordingly, today’s 30% move higher in SPIR stock seems to make a whole lot of sense. Let’s dive more into this announcement and what it may mean for investors moving forward.
SPIR Stock Surges on Latest AI Collaboration
With Nvidia’s GPU Technology Conference (GTC) ongoing, investors are expecting to hear more about additional collaborations and partnerships moving forward. This particular deal is considerable, as it expands the AI use case into an industry that’s now an obvious vertical. However, it is one many investors may not have thought about previously.
Spire Global has gone from a company with a market capitalization of around $300 million to a stock many are watching closely now. If this collaboration provides the kind of value many think it can, this stock could prove to be very undervalued here.
The company has noted that combining Nvidia’s APIs with Spire Global’s data collection mechanisms will allow for certain computations that weren’t feasible with the company’s existing infrastructure. So, the number of potential product improvements and innovations has grown exponentially with this partnership announcement.
We’ll have to see how this deal ultimately affects the company moving forward. But given the fact that Spire Global currently loses money, any sort of value-added program such as this is likely to spur continued investor interest. This is now a stock on my watch list, and I’m thinking other investors are going to watch the company more closely following this news.
On the date of publication, Chris MacDonald 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.
