Prime Number Capital LLC Initiates Coverage on XIAO-I Corporation (NASDAQ:AIXI)
June 09 2023 - 2:54AM
Prime Number Capital LLC initiated coverage of XIAO-I Corporation
(NASDAQ: AIXI). The research report by the analyst at Prime Number
Capital LLC based on the target price and current market
conditions.
XIAO-I Corporation, a leading cognitive
intelligence enterprise in China, offers a diverse range of
business solutions and services in artificial intelligence,
including natural language processing, voice and image recognition,
machine learning, and affective computing. The company has
demonstrated its expertise in the field and has a track record of
providing reliable and effective AI solutions to various
industries.
The projected annual revenue for XIAO-I
Corporation is estimated to reach 133.59 million USD in 2024, with
a projected net income of 16.97 million USD in the same year.
Several key factors contribute to the positive
outlook on XIAO-I Corporation:
First-mover advantage in AI: Being an early
entrant in the market has positioned XIAO-I as a leader and
established significant market share. The company has a strong
research team, with nearly 300 experts and a substantial number of
patents, providing a competitive edge that is difficult for
competitors to replicate.
In-house LLM deployment: XIAO-I's upcoming
release of its self-developed Large Language Model (LLM) in June is
a noteworthy development. This LLM aims to enhance the capabilities
of its narrow AI systems, enabling them to handle more complex
problems with better precision. This innovation is expected to
bolster XIAO-I's competitive advantage.
Increasing adoption of AI technology: The surge
in the adoption of AI technology across industries, driven by
advancements in Natural Language Processing (NLP), presents
significant opportunities for XIAO-I. The company's expertise in
leveraging AI and NLP to address industry-specific challenges
positions it to expand its customer base and explore new revenue
streams.
Diverse customer base: XIAO-I serves customers
across various industries, including Contact Center, Finance, Urban
Public Service, Construction, Metaverse, Manufacturing, and Smart
Healthcare. By implementing advanced NLP solutions tailored to
specific industries, XIAO-I has the potential to capture untapped
market segments and generate additional growth.
Mandarin NLP specialization and regulatory
environment: XIAO-I's specialization in Mandarin NLP gives it a
competitive advantage in serving Mandarin-speaking users.
Furthermore, the strict regulatory environment for foreign tech
companies operating in China creates barriers to entry for
competitors, providing XIAO-I with a favorable market position.
Vertical expansions for better monetization: By
collaborating with industries vertically, XIAO-I gains
comprehensive knowledge and insights into each industry's pain
points. This allows the company to develop more effective solutions
and capitalize on better monetization opportunities.
The favorable AI market conditions in China
further enhance XIAO-I's growth prospects. According to Frost &
Sullivan, China's AI market has experienced exponential growth,
reaching USD 388 billion in 2021, with a compound annual growth
rate of 47.9%. The Chinese government's supportive policies, strong
R&D capabilities, extensive data volume, and relatively low
cost of technology personnel have contributed to this growth. The
projected penetration rate of the AI market in China is expected to
reach 32.7% by 2026, with a market size of USD 219.1 billion.
As XIAO-I Corporation continues its journey as a
B2B-focused AI powerhouse, Prime Number Capital believes that the
company's domain-oriented strategy and cognitive intelligence
technologies will drive sustainable and profitable growth in the
long term. With the upcoming release of its LLM, XIAO-I is poised
to offer innovative solutions and expand its market share across
industries and domains.
For more information about XIAO-I Corporation, please visit
https://www.xiaoi.com.
Disclosures
Please refer to the initiation report for full
disclosures. Prime Number Capital LLC has managed a public offering
of securities for the subject company Xiao-I Corporation in the
past 12 months. Prime Number Capital LLC has received compensation
for investment banking services from the subject company Xiao-I
Corporation in the past 12 months. The subject company Xiao-I
Corporation currently is or during the 12-month period preceding
the date of distribution of this research was a client of Prime
Number Capital LLC and received investment banking services. Prime
Number Capital LLC may continue to receive, or intends to seek,
compensation for investment banking services in the next 12 months
from Xiao-I corporation. The research analyst and research
associate have not received compensation based upon various
factors, including quality of research, investor client feedback,
and Prime Number Capital LLC 's overall revenues, which includes
investment banking revenues for Xiao-I Corporation. Prime Number
Capital LLC, at the time of publication, does not make a market in
the subject company Xiao-I Corporation.
For further questions, please contact:
Prime Number Capital LLCMr. Hao
ShengEmail: hao.sheng@pncps.com Phone: 516-582-9666
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