![\"Tech](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/10\/Tech-Stock.png\")
<\/a><\/p>\nA chip cooling technology company is the hottest stock in Oslo.<\/p>\n
Oslo-listed Asetek A\/S,\u00a0an\u00a0Aalborg, Denmark-based company that delivers liquid cooling systems for personal computers and servers, has risen 136 percent so far this year, making it the biggest gainer on the Oslo Stock Exchange. Now it\u2019s targeting a bigger chunk of the data center cooling business to ensure lasting returns.<\/p>\n
\u201cThe data center is where the biggest potential is long-term,\u201d Chief Executive Officer\u00a0 Andre Eriksen said by phone on Wednesday. \u201cIn the longer perspective, I believe that data centers will be liquid cooled.\u201d<\/p>\n
Asetek\u2019s cooling systems are used in products from Dell, HP, Lenovo and Intel and are in high demand from do-it-yourself enthusiasts and gamers eager for high-performance computers.\u00a0The growth of E-sports, where professional competitors play video games before audiences of fans, has seen a resurgence in personal computers after lagging gaming consoles in recent years. The\u00a0company\u00a0 raised its outlook\u00a0in August for 2017 desktop sales growth to 10 to 20 percent growth from the single digit growth it saw earlier.<\/p>\n
\u201cIt\u2019s difficult to say how big e-sports can be,\u201d Eriksen said. \u201cIt\u2019s outgrowing everything we could believe five years ago. It\u2019s still growing pretty fast. There is solid demand in the desktop space.\u201d<\/p>\n
Technology stocks have been among the leaders in the STOXX Europe 600 Index this year as companies start to reinvest in computer systems and consumers take up new services that require more and more data. The STOXX 600 Europe Technology Index is up 21 percent year-to-date compared with 8.3 percent for all sectors.<\/p>\n
Asetek\u2019s Eriksen started building data chip cooling systems\u00a0\u201cjust for fun\u201d when he studied at Aalborg University to help his gamer friends speed up their computers. Two decades later he now runs a 3.2 billion-krone ($400 million) company.<\/p>\n
With 91 percent of revenue coming from the desktop business, data center cooling certainly has room to grow for the company. Asetek was selected by an undisclosed partner for a new data center product to be unveiled in November with revenue coming in from then,\u00a0it said earlier this year.\u00a0Eriksen estimates the total data center cooling market is worth about $5 billion to $10 billion.<\/p>\n
This new partnership will be the \u201cnext important trigger\u201d for the stock, according to\u00a0Danske Bank analyst Johan Murer, who rates the stock a buy. With Intel as the most likely partner, there\u2019s more room for the shares to advance if Asetek \u201clives up to expectation on the data center partnership,\u201d he said.<\/p>\n
But high expectations may also open the door to disappointment.<\/p>\n
\u201cAsetek has indicated that it will be a game changer for the company,\u201d Murer said in an email. \u201cThe stock could fall back if the partner isn\u2019t Intel.\u201d<\/p>\n
A chip cooling technology company is the hottest stock in Oslo.<\/p>\n","protected":false},"author":341034,"featured_media":205114,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[25],"tags":[46701,40418],"class_list":["post-233421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-hosting","tag-asetek-as","tag-liquid-cooling"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/233421"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=233421"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/233421\/revisions"}],"predecessor-version":[{"id":233425,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/233421\/revisions\/233425"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/205114"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=233421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=233421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=233421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a><\/p>\nNow read:\u00a0Webafrica splitting its business in two<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"