uSmart Securities Updates Coverage of SAIHEAT Limited

Rhea-AI Summary

uSmart Securities has updated its coverage of SAIHEAT Limited (NASDAQ: SAIH), reiterating a BUY rating and raising the price target to $31.32 from $25.87. The upgrade is driven by three key factors: SAIHEAT's recent patent approval for SMR control rod drive mechanism, favorable U.S. nuclear policy reforms under President Trump, and increased demand from cryptocurrency and AI infrastructure sectors. The company reported FY2024 revenue of $5.54M, slightly above estimates of $5.45M, with a net loss of $5.89M due to R&D investments. uSmart's analyst highlights SAIHEAT's evolution from a SMR player to a comprehensive computing infrastructure operator, noting its current valuation at 0.3x FY26E P/S is significantly discounted compared to peers like OKLO and NuScale.

Positive

• Received patent approval for innovative SMR control rod drive mechanism, enhancing technology portfolio
• Price target raised significantly by uSmart Securities from $25.87 to $31.32
• FY2024 revenue of $5.54M exceeded analyst estimates of $5.45M
• Favorable U.S. nuclear policy reforms simplifying licensing and facilitating testing
• Strong market positioning in growing AI and cryptocurrency infrastructure sectors

Negative

• Reported net loss of $5.89M in FY2024 due to R&D investments
• Currently trading at significant discount compared to peers (0.3x FY26E P/S)
• Early stage of commercialization with pilot deployments yet to transition to full contracts

Insights

Financial Analyst

Analyst upgrade validates SAIHEAT's nuclear-AI strategy with strong catalysts from patents, policy changes, and computing demand growth.

This analyst upgrade from uSmart Securities represents a material positive development for SAIHEAT. The 21% increase in price target (from $25.87 to $31.32) reflects growing confidence in the company's positioning at the intersection of three high-growth sectors.

The key value drivers identified in the report form a compelling investment thesis. First, the May patent approval for SMR control rod drive mechanisms strengthens SAIHEAT's intellectual property moat in nuclear technology. Second, the recent executive orders simplifying nuclear licensing create a more favorable regulatory environment for SMR deployment. Third, the 26% rise in Bitcoin prices since April coupled with the GENIUS Act passage signals accelerating demand for energy-efficient computing infrastructure.

Financially, SAIHEAT slightly exceeded revenue expectations ($5.54M vs. $5.45M estimate) in FY2024, though continued R&D investments resulted in a $5.89M net loss. The uSmart analyst highlights the company's significant valuation discount relative to nuclear peers, trading at approximately 0.3x FY26 estimated price-to-sales versus substantially higher multiples for competitors.

The convergence of containerized IDC solutions, liquid cooling technology, and nuclear energy expertise positions SAIHEAT uniquely in the market. The transition from pilot deployments to full contracts could accelerate revenue growth, particularly as demand for AI computing and cryptocurrency mining infrastructure continues to expand in a more nuclear-friendly regulatory environment.

Energy Technology Specialist

SAIHEAT's patent for SMR control mechanism enhances safety profile while policy reforms remove critical deployment barriers.

The patent approval for SAIHEAT's SMR control rod drive mechanism represents a significant technological milestone. Control rod systems are critical safety components in nuclear reactors, regulating the fission process. Enhanced precision in compact nuclear systems addresses one of the key challenges in SMR commercialization - maintaining safety profiles while reducing reactor size.

The timing of this patent coincides perfectly with the executive orders simplifying nuclear licensing and testing protocols. These policy changes remove substantial regulatory friction that has historically delayed SMR deployment timelines by years. The prioritization of reactor deployment on federal land creates immediate market opportunities for SAIHEAT without navigating complex state-level approvals.

What's particularly noteworthy is SAIHEAT's integrated approach combining nuclear expertise with data center thermal management. Their liquid cooling and heat recovery solutions address the massive energy efficiency challenges facing AI and cryptocurrency infrastructure. This cross-sector integration creates multiple revenue paths while differentiating from pure-play nuclear or cooling technology providers.

The containerized approach to infrastructure deployment aligns with modern data center trends toward modular, scalable solutions. As computing workloads intensify with AI development and cryptocurrency mining, SAIHEAT's ability to provide both power generation and efficient cooling positions them advantageously in markets where energy costs and thermal management are primary operational concerns.

Reiterates BUY Rating and Raises Price Target to $31.32 Following SMR Breakthrough and Favorable Policy Developments

SINGAPORE, June 12, 2025 (GLOBE NEWSWIRE) -- SAIHEAT Limited (“SAIHEAT” or the “Company”) (NASDAQ: SAIH, SAITW), today announces that uSmart Securities has updated its coverage of the Company, reaffirming its BUY rating on SAIHEAT and raising the 12-month price target to $31.32, up from $25.87. This revision reflects significant advancements in the Company’s nuclear technology, supportive U.S. policy shifts, and growing demand for AI and cryptocurrency infrastructure.

Click to view the full equity research report in English and Chinese.

Key Drivers for Valuation Upgrade:

1. SMR Patent Achievement: On May 14, 2025, SAIHEAT received patent approval for its innovative small modular reactors (SMRs) control rod drive mechanism, enhancing precision and safety in compact nuclear systems and strengthening its intellectual property portfolio.

2. U.S. Nuclear Policy Reforms: President Trump’s executive orders on May 24, 2025 simplified nuclear licensing, facilitated testing at Department of Energy laboratories, and prioritized reactor deployment on federal land, thereby removing regulatory barriers and expanding growth opportunities for domestic SMR companies like SAIHEAT.

3. Cryptocurrency and AI Infrastructure Demand: The recent surge in Bitcoin prices (up 26% since April 1, 2025) and the passage of the GENIUS Act on May 19, 2025 have increased demand for energy-efficient computing. SAIHEAT’s integrated liquid cooling and heat recovery solutions are well-positioned to capitalize on this trend.

Operational and Strategic Positioning:

SAIHEAT’s fiscal year 2024 financial results met expectations, reporting revenue of $5.54 million (as compared to $5.45 million estimate), though R&D investments contributed to a net loss of $5.89 million. The Company’s integration of AI data centers, Bitcoin mining infrastructure, and advanced nuclear energy systems allows it to monetize cross-sector demand effectively. Its containerized IDC solutions and liquid cooling platforms are gaining traction, with pilot deployments set to transition into full contracts amid the AI and Bitcoin boom.

Analyst Insight:

Chan Kwok Keung, Head of TMT Research at uSmart Securities, remarked in the research report:

“SAIHEAT has evolved from a niche SMR player to a comprehensive computing infrastructure operator at the intersection of AI, clean energy, and digital assets. Recent patent advancements and favorable policies de-risk its growth trajectory, while its valuation (approximately 0.3x FY26E P/S) remains significantly discounted compared to peers like OKLO (+139%) and NuScale (+143%). The market is undervaluing its potential in high-growth, policy-aligned sectors."

Valuation Context:

uSmart's raised target price of $31.32 considers sector re-rating momentum, with nuclear-themed compute peers substantially outperforming broader indices. SAIHEAT’s unique growth potential, intellectual property advantages, and visibility into resilient energy infrastructure demand justify this valuation upgrade.

Click to view the full equity research report in English and Chinese.

About SAIHEAT

SAIHEAT (NASDAQ: SAIH) is a global distributed computing power operator. By leveraging a modular computing power system, we help energy owners address the issues of local energy consumption and efficient resource utilization. The company provides BTC cloud mining services by joint computing power, as well as energy digitization and monetarization solutions for energy asset owners. These technologies contribute to reducing the carbon footprint and provides innovative solutions for energy enterprises.

For more information on SAIHEAT, please visit: https://www.saiheat.com.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements include, but not limited to, statements concerning SAIHEAT’s operations, financial performance, and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. SAIHEAT cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic, and social conditions around the world including those discussed in SAIHEAT’s Form 20-F under the headings “Risk Factors”, “Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and SAIHEAT specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

Media Contact:
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Investor Relations Contact:
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FAQ

What is SAIHEAT's new price target from uSmart Securities?

uSmart Securities raised SAIHEAT's 12-month price target to $31.32 from $25.87, citing SMR breakthrough and favorable policy developments.

What were SAIHEAT's (SAIH) FY2024 financial results?

SAIHEAT reported FY2024 revenue of $5.54 million, slightly above estimates of $5.45 million, with a net loss of $5.89 million due to R&D investments.

What recent patent did SAIHEAT receive in 2025?

SAIHEAT received patent approval for its small modular reactors (SMRs) control rod drive mechanism on May 14, 2025, enhancing precision and safety in compact nuclear systems.

How does SAIHEAT's valuation compare to its peers?

SAIHEAT's valuation of approximately 0.3x FY26E P/S is significantly discounted compared to peers like OKLO (+139%) and NuScale (+143%).

What are the key drivers behind uSmart's SAIH valuation upgrade?

The upgrade is driven by SMR patent achievement, U.S. nuclear policy reforms under Trump, and increased demand from cryptocurrency and AI infrastructure sectors.