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On Monday, Rosenblatt Securities began covering Blaize Inc. (NASDAQ:BZAI), assigning a Neutral rating to the company’s stock, along with a price target of $3.00. Currently trading at $2.67, the stock has experienced significant volatility, falling over 75% in the past six months. According to InvestingPro analysis, the stock appears fairly valued at current levels. The firm’s analysis is based on a projected fiscal year 2026 revenue estimate of $108 million and a price-to-sales multiple of 3.0. Blaize specializes in edge AI acceleration and programmable silicon, providing solutions across various sectors, including Smart Vision & Security, Industrial & Enterprise Edge AI, and Automotive & Autonomous Systems.
Blaize’s proprietary Graph Streaming Processor (GSP) is engineered to process AI inference workloads efficiently and with low power consumption. The GSP’s architecture is especially suited for edge computing, allowing for the handling of diverse data types and enabling users to execute comprehensive workloads independently of data center infrastructure, which can be expensive and subject to latency issues.
The company also offers AI Studio, a no-code/low-code development suite, and its Picasso SDK, which aim to democratize AI by making it accessible to those without coding skills, thereby speeding up deployment and revenue generation. Rosenblatt acknowledges the potential shift in the edge AI market, as predicted by Bell’s Law, which anticipates the emergence of new computing classes designed for decentralized and local AI-driven tasks. Blaize’s technology is intended to support this transition.
Despite Blaize’s unique design, strategic alliances with firms like DENSO (OTC:DNZOY) and Mercedes-Benz (OTC:MBGAF), and a promising pipeline valued at over $400 million, Rosenblatt maintains a cautious stance in the near term. The company’s lack of substantial revenue recognition, prolonged sales cycles, and significant R&D investments present challenges in forecasting profitability and growth scale.
Blaize has secured early customer orders, such as a $104 million defense contract in the EMEA region, and its sales funnel is expanding. This positions the company for potential future growth, with analysts projecting revenue growth of nearly 17% for FY2025. Nonetheless, Rosenblatt’s current assessment reflects the existing risks associated with execution, revenue predictability, and the limited visibility of deployment outcomes. With current revenue at just $1.55 million and a significant EBITDA loss of $46.75 million in the last twelve months, the firm is adopting a wait-and-see attitude, looking for clearer signs of deployment success, margin improvement, and the ability to monetize the sales pipeline before reconsidering its stance on Blaize stock.
In other recent news, Blaize Inc. has reported its latest developments, capturing the attention of investors and analysts alike. Following the company’s fourth-quarter earnings for fiscal year 2024, DA Davidson maintained a Buy rating with a $10 price target, highlighting growing customer interest in AI-specific hardware across various sectors. Meanwhile, analysts at Craig-Hallum initiated coverage with a Buy rating and a $4.50 price target, citing Blaize’s unique position in the edge AI inference market and its potential for a stable revenue stream. In a strategic move, Blaize has partnered with Turbo Federal to advance AI initiatives within the U.S. Department of Defense, aiming to integrate AI technologies into military operations.
Additionally, Blaize announced a collaboration with South Korea’s KAIST Institute for NanoCentury to foster research and development in edge AI computing applications. This partnership will focus on AI-based chips for biomedical and sustainable energy technologies. These developments underscore Blaize’s ongoing efforts to expand its edge AI computing applications and establish valuable partnerships. The company has raised over $330 million from various investors and operates globally, with a significant presence in multiple countries. These recent activities reflect Blaize’s strategic direction and potential for growth in the evolving AI landscape.
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