Tata small-cap fund-backed tech gem soars with historic single-day gain on NVIDIA partnership; don't miss out on the action!

The stock witnessed a remarkable surge of over 8 per cent, marking its highest single-day up-move since listing.

Indian markets displayed a mixed trend on Tuesday, with the Nifty 50 index maintaining its position above 19,800, marking a 0.16% increase. Conversely, the Sensex experienced a marginal decline of 0.02 per cent. Examining sectoral performance, the majority showed positive movements, led by Nifty Energy and Nifty Metal, both exhibiting a 1.75 per cent gain. Conversely, Nifty IT and Nifty FMCG were the Top Losers.

In the broader market, buying activity was evident as Nifty Mid-Cap and Small-Cap indices advanced by 0.25 per cent each. Notably, amidst the broader market's outperformance, Netweb Technologies India Ltd (NTIL), a small-cap company, attracted attention. NTIL, originally established as a proprietorship concern in 1999, transitioned to a private limited company in 2016 and became public in fiscal 2023. The company specializes in computer server solutions, playing a significant role in the implementation of India's second-fastest supercomputer, Kabru, and PARAM YUVA II, the fastest supercomputer, as part of the National Supercomputing Mission.

NTIL's stock witnessed a remarkable surge of over 8 per cent, marking its highest single-day up-move since listing. The trading volume on the National Stock Exchange (NSE) reached a historic high. What fueled this positive momentum?

Netweb Technologies, a leading Indian Original Equipment Manufacturer (OEM) in high-end computing, announced a strategic partnership with NVIDIA. NTIL is now a manufacturing partner for the NVIDIA Grace CPU Superchip and GH200 Grace Hopper Superchip MGX server designs. The company plans to produce over ten server variations under its Tyrone range of AI systems, targeting a wide array of AI and high-performance computing applications.

The collaboration with NVIDIA, particularly involving the MGX platform, positions Netweb's AI systems to address complex workloads, including HPC, data science, language models, edge computing, enterprise AI, and design and simulation. This product range is designed to support multiple workloads simultaneously, such as AI training, inference, and 5G, all on a single system. The collaboration aims to harness the immense potential of AI in India and the Asia-Pacific region, aligning with the 'Make in India' mission.

Tata Mutual Fund, specifically Tata Small Cap Fund, holds a notable 2.46 per cent stake in Netweb Technologies. The stock, with an initial issue price of Rs 500, debuted on the NSE at Rs 947 and reached a high of Rs 952 in July 2023. Bolstered by a robust order book of Rs 2,174 million and a promising pipeline, the management anticipates a significantly stronger second half for the company.

Disclaimer: The article is for informational purposes only and not investment advice.