After a tough first half, Rakon tips new AI components will rival telco segment

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After a tough first half, Rakon tips new AI components will rival telco segment

Rakon is optimistic about its new AI component line, MercuryX, which is expected to offset declines in the telecommunications sector. The company anticipates that sales from these AI products will rival its telecommunications revenues within five years. Despite a challenging first half of 2025, Rakon sees positive market signals and expects a recovery in orders during the second half of the year.

The shift of some manufacturing operations to India is expected to enhance margins and operational efficiency. Rakon's strategic focus on AI technologies positions it well to address synchronization challenges faced by data centers. With a strong order book in the space and defense segments, Rakon is poised for growth as market conditions improve.

• Rakon's AI components expected to rival telecom revenues in five years.

• MercuryX generates high customer interest from major global hardware companies.

Key AI Terms Mentioned in this Article

AI Componentry

Rakon's new AI component line, MercuryX, aims to address market needs in AI computing.

Synchronization Challenges

Rakon's technology is tailored to help data centers manage these challenges effectively.

AI Workloads

Rakon's products are designed to optimize performance for these demanding workloads.

Companies Mentioned in this Article

Rakon

Rakon is expanding its product offerings to include AI components, reflecting its strategic shift towards AI-driven markets.

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