Shares of India-based digital services firm Lytus Technologies (NASDAQ:LYT) are catapulting higher on Thursday following a compelling news item. With its introduction of Lytus Cloud — a suite of cloud infrastructure services with so-called “robust management capabilities” — the tech firm is attempting to tap into the burgeoning data center market. On top of that, a few notable institutional investors have been betting on LYT stock.
According to a recent press release, Lytus’ new cloud initiative is “strategically positioned” to leverage “burgeoning demand for high-performance computing (HPC) infrastructure, fueled by advancements in deep tech such as natural language processing, large language models, and machine learning.”
Obviously, these elements have commanded significant intrigue over the past year, thanks to the rise of generative artificial intelligence (AI). Further, Lytus claims that the launch of its cloud platform promises to deliver “unparalleled flexibility, functionality, and value to enterprise clients across a spectrum of cloud services.” These services include areas such as public cloud, private deployments and hosting services.
Institutional Heavyweights Show Their Support for LYT Stock
Fundamentally, the decision to launch a cloud solutions platform aligns with a massive underlying total addressable market. Citing data provided by Statista, the global data center market may reach a valuation of $340.2 billion by the end of this year. What’s more, by 2028, sector revenue could land at $438.7 billion. Therefore, it’s not particularly surprising to see LYT stock jumping higher on the news today.
Just as well, a few institutional investors have been placing wagers on LYT stock. The top five players are as follows:
- Citadel Advisors: 4,760 shares.
- Walleye Capital: 3,333 shares.
- Renaissance Technologies: 2,360 shares.
- Two Sigma Securities: 1,886 shares.
- Geode Capital Management: 679 shares.
Adding to the sentiment for LYT stock, Lytus believes that the launch of its cloud initiative is expected to “catalyze growth” across all of its offerings. In addition, management expects to see reduced cloud-related expenses along with the deployment of “state-of-the-art products and services.”
Why It Matters
On a year-to-date (YTD) basis, LYT stock is up more than 40%, which may appear enticing for prospective investors. Nevertheless, the stock remains a risky proposition.
First, no analyst covers Lytus Technologies at the moment. Second, LYT stock has lost more than 75% over the past 52 weeks. Shares are also down 99% since making their public market debut.
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On the date of publication, Josh Enomoto did not hold (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.
