Shares of CIMG Inc. (NASDAQ:IMG) stock is trending after the company recently announced that it secured $124 million in computer-power related commercial contracts.
New Contracts Signed In Fourth Quarter
CIMG said it committed to $124 million in contracts and framework agreements during the fourth quarter, but that the revenue from these projects is not guaranteed.
For example, one of the company’s subsidiaries in Beijing was shortlisted by the Bank of Guangzhou Co., Ltd. with a benchmark bid amount of approximately $15.95 million, but the company may not win the contract ultimately.
There were also at least two deals for computing power projects, which will involve the sale and delivery of computing power hardware, including computing servers and GPUs manufactured by third-party suppliers including NVIDIA. Computing is needed for artificial intelligence infrastructure.
“Our move into the computing power industry is not about chasing short-term trends but is based on a deep understanding of the industry’s future, viewing it as a cornerstone for the company’s long-term development,” said Wenlong Tong, who was recently appointed president of the company.
Stock Rises Early Friday
IMG Price Action: Shares were up 6.56% at $1.29 at the time of publication, according to Benzinga Pro.
Read Next:
Image: Shutterstock.com
