PSIX($3.95) is a back-door AI play, IMO
While Q1 revenues were down 18% overall, the company reported a revenue increase of $17.3 million in the power systems end market (from $44.6M to $62M). According the Q1 PR, "Higher power systems end market sales are primarily due to increased demand for products across various applications, with the largest increases attributable to products used within the packaging market such as enclosures serving the fast-growing data center market ..."
Power Systems revenues accounted for an impressive 65% of Q1'24 revenues, versus just 38% in Q1'23. Also, I would argue that Power Systems revenues are more profitable than the company's other segments, as overall gross margin rose from 20% in Q1'23 to 27% in Q1'24.
Trading at a trailing 12-month P/E of just 3, PSIX remains a very compelling value in my opinion.
We make a living by what we get, we make a life by what we give.
--Winston Churchill
