Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Profit from the Breakthrough in Liquid-Cooled Computers

Companies / Technology Mar 22, 2013 - 12:25 PM GMT

By: Money_Morning


Michael A. Robinson writes: When Ray Harroun came out of retirement in 1911 to race in the first Indianapolis 500, he made one request: He wanted to ditch the ride-along mechanic that the rules required in order to save weight and give his yellow Marmon Wasp a racing edge.

The Indy organizers balked: The mechanic provided a big measure of safety, they said, acting as a spotter who could watch for cars behind or on either side of the racer.

Harroun bolted a mirror to a bracket on his dashboard, was permitted to race without a mechanic, and won the inaugural Indy race - leading 88 of the 200 laps, the most of anyone.

And the rear-view mirror that Harroun used to gain an advantage in a car race? It's now standard safety equipment on motor vehicles of all types - meaning it occupies the ranks of devices or substances that were designed to solve one problem, but were later found to solve others just as well.

Today I'm going to share a similar story, and show you how a fluid developed to keep aircraft parts clean or suppress fires is being used to solve one of the biggest computer problems we face today.

And I'm even going to show you how to make money from it.

In the Age of the Internet, the invention of a high-powered computer known as a "server" is one of the things that have allowed our tech-oriented society to survive and thrive.

In a nod to our country's agrarian roots, these servers are packed into huge buildings, organized in neat rows just like the corn on a Midwest farm.

But that's where the agrarian similarity ends.

You see, as electronic circuits keep getting smaller, they make each server used for the Web and private computer networks much more powerful. But technology is just like finance in that there's no free lunch: This escalation in power and reduction in size creates a big problem.

I'm talking about heat.

These servers run very hot. And that, in turn, increases the odds of a server "meltdown," meaning the box just gets fried and becomes useless.

Right now, server farms rely on two main cooling sources.

The first is high-speed electric fans that blow air over the devices.

The second is executed by pumping lots of cold air into these huge rooms.

Trust me, you wouldn't want to have to pay the electricity bill for one of these facilities: Experts estimate that the U.S. alone spends roughly $7.4 billion a year cooling data centers.

Now you understand one of the key financial drains with all these server farms sprouting up all over the world.

But here's the thing: With every problem that needs solving, there's also a profit opportunity for the organization that devises the solution.

Enter Iceotope Research and Development Ltd. Their solution: keep computers cool by using a strange gooey liquid.

Don't scoff. Liquids and sensitive electronic gear usually work together like a baseball and your neighbor's living-room window. But Iceotope has found a way for an alcohol-based chemical to keep all those circuits running cool -without the liquid damaging the complex electronic gear.

To achieve its results, the U.K.-based firm partnered with industry giant 3M Co. (NYSE: MMM). That big-cap leader has sold its Novec Engineered Fluid for at least two decades.

Because it isn't water-based - meaning it doesn't cause oxidation (rust) or other types of corrosion - the substance is often used by the military and aerospace firms as a parts cleaner. It also works great as a fire suppressant in rooms full of electronics because use of a water-based product there could ruin millions of dollars' worth of sensitive equipment.

But using it as a liquid cooling agent for computer centers is indeed a novel use of this substance. As such, I see this as just one more example of how we have entered what I call the "Golden Age of Materials Sciences."

If we're to maintain the rapid pace of innovation we've been experiencing, we have to keep finding new materials that can solve complex problems.

Or come up with unique new twists for already-existing chemicals.

That's why I think Iceotope is really onto something here. The result is a system that offers huge efficiencies.

Really, the stats are off the charts. Consider that Iceotope says its approach lowers data-center-cooling costs by 97%. That's pretty close to getting it down to free.

But that's not all - the firm says its approach lowers overall infrastructure costs for these centers by half and reduces the overall power load by 20%.

And the cooling system is only part of Iceotope's innovative package. There's also the "platform" itself. And it's pretty simple, combining a computer cabinet with a server module.

In turn, those modules can be set up for dedicated computing, or for telecommunications needs.

Iceotope is after two main markets. First, the cabinets can be designed as supercomputers. Those machines are used for such Big Data applications as searching through social networks, looking for the origins of the universe and catching terrorists before they strike.

Second, the boxes tap another major trend - cloud computing. That's because they can be wired into a series of server racks that comprise a full data center. This is a real growth area because hundreds of millions of mobile devices need to access the cloud for data, video and more.

So, Iceotope has great science, access to one of the world's top materials companies, and a couple of major tech trends going for it.

But it's also a private company, meaning it has yet to issue its stock to the public.

But don't worry about that - there are actually four ways to profit from this new field of "liquid-cooled computing."

First, there's 3M. The mega cap firm likely won't get a lot of sales from the Iceotope solution at this point.

But the breakthrough shows the firm can still remain on the leading edge of high tech at a time when materials science is so vital.

For its computer modules, Iceotope is working with Intel Corp. (NasdaqGS: INTC) and its arch rival - Advanced Micro Devices Inc. (NasdaqGS: AMD).

These two chipmakers couldn't be more different. Intel has a market cap of $107 billion, compared to $1.9 billion for AMD. Intel is clearly the more stable of the two firms.

In the past, I have described AMD's stock as a "bottom-feeder's dream." Trading at $2.60 a share, it's a risky play suited for aggressive investors.

Let me close by telling you about one other firm partnering with Iceotope. It's Super Micro Computer Inc. (NasdaqGS: SMCI), a maker of high-performance servers.

With a market cap of about $490 million, Super Micro trades at 10 times forward earnings and just 0.45 times sales at its recent share price of roughly $11.60.

With a consensus target of $15 - about 30% above where Super Micro is trading now - analysts seem to like the shares of this maker of energy-efficient computer servers.

It's impossible for me to predict at this point which of these stocks will have the best performance over the next couple of years.

But this much is certain. Liquid-cooled computing is an exciting new field that could have a dramatic impact on the entire field of computing, an area that touches just about every part of our lives today.

And just as Ray Harroun had no idea how much his invention would change the world that day in Indianapolis, there's no telling what other innovations this new data-farm technology will spawn.

Just know that when those innovations do appear, we'll be here to show you the best ways to profit.

[Editor's Note: It doesn't matter what's "hot" in investing, nobody is better equipped to than Michael to deliver "home run" gains in the tech sector. And now for a limited time, you can get immediate full access to his Radical Technology Profits model portfolio for just $99. But that's only a small part of this story. The same deal includes a " test drive" all of our premium services but one. That's $27,500 in research, for just $99! You can go here for the details]

Source :

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in