OSS - One Stop Systems Inc. (OSS) - First Award Under New AI Transportables Target

New Award. Yesterday, OSS announced it had secured its first production orders for a ruggedized-edge, transportable system from a self-driving trucking technology company that utilizes level 4 driving automation (these vehicles do not require human interaction in most circumstances. However, a human still has the option to manually override). These production orders demonstrate OSS's successful strategy for designing and delivering AI Transportables, in our view.A Little Deeper Dive Into AI Transportables. AI Transportables is OSS's description of delivering datacenter-like performance at the edge or in the field. Vehicles, oil & gas, mining, Military applications whether they be on land, in the sea, air, or space. Applications that required specialization, be it form factor, size, weight, ruggedness, etc. Product that is definitely not "off-the-shelf." According to Zion Research, nearly 75% of all data will be processed at the edge by 2029, compared to less than 10% today.Why? In a word, expertise. The Challenges associated with AI Transportables is were OSS's expertise is greatest and areas that offer the greatest growth opportunities. Management estimates that some 20% of current revenues fits into the AI Transportables segment and nearly 50% of all proposals are in this space. The market is estimated at up to $400 million today but could be $1.5 billion in a couple of years, providing ample growth opportunities for OSS. And typically, this work provides the highest margins for the Company, as well as repeat business.Market Perform. We are maintaining our Market Perform rating on One Stop Systems. We continue to be big believers in the One Stop story and the vast potential of its position within the High Performance Computing and AI spaces.Read More >>