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Israeli Startup Beamr Surges 1500% in Stock Price after Partnership with Nvidia

ByEditor

Feb 13, 2024
Nvidia’s Impact: Israeli Company Soars 400% on Wall Street

In a significant boost, Israeli company Beamr’s stock price soared by around 1500% during trading on Monday following the announcement of a partnership with chip giant Nvidia. The Tel Aviv-based startup, which was founded and managed by Sharon Carmel, has been providing solutions in video and broadcasting for several years now.

Beamr’s clients include content distributors, internet broadcasting companies, streaming platforms, and Hollywood studios. They offer services such as encoding, converting and optimizing video to ensure high quality, performance, and efficiency. In fact, the company even won an Emmy Award for their technology in the past.

Today, Beamr announced joint research they are presenting with Nvidia at a conference in Denver. The study focuses on the transition from the AVC/H.264 format to the AV1 format while maintaining quality. Despite the growing demand for video content at an exponential rate, most videos today still use a 20-year-old format that existed before smartphones and high-speed internet.

According to Tamar Shoham, Beamr’s CTO, the transition to AV1 has been a complex process due to two reasons: firstly, it requires much more computing power and therefore higher costs; secondly, it requires a steep learning curve because it is challenging to determine how much additional compression can be implemented without sacrificing video quality. However, through this collaboration with Nvidia, Beamr addresses both challenges by utilizing Nvidia hardware to maintain performance while keeping costs similar.

In terms of revenue growth, Beamr recorded $1.4 million in revenues in the first three quarters of 2023 compared to $1.2 million in the corresponding period last year. The company expects 2023 to end with similar revenues but anticipates growth accelerating in 2024 as this new partnership will undoubtedly bring more opportunities for expansion into new markets and technologies.

At closing time on Wall Street on Monday evening (Monday), Beamr’s stock price jumped by around 400%, giving them a market value of $129 million.

In summary: Israeli startup Beamr saw its share price rise by approximately 1500% after announcing a partnership with chip giant Nvidia at trading on Monday (Monday). This collaboration aims to facilitate the transition from AVC/H.264 format to AV1 format while maintaining quality on a larger scale using Nvidia hardware despite previous challenges such as high costs and steep learning curves associated with these transitions.

With revenue growth expectations of $1.4 million in Q3 compared to $1.2 million in Q3 of last year and anticipated acceleration of growth starting from 2024 following this new partnership with Nvidia – all signs point towards an exciting future for this Tel Aviv-based startup!

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