Micro-cap company Xos went up 235% in a day. What did it offer to data centers?

Quotes of Xos, a micro-cap maker of electric trucks and mobile solutions for recharging them, soared 235% on June 3. The company announced the launch of a solution that will power data centers in the absence of a centralized power grid. Connection to it stretches for years, Xos installations can be deployed in a few days, the manufacturer assures.

Xos shares rose 235% to $7.46 on the Nasdaq on June 3. The rally began after the company said it was launching its Power Hub family of energy systems. They will have enough capacity to power data centers, industrial and mission-critical facilities, the manufacturer said.

The International Energy Agency predicts that global power consumption by data centers will double by 2030, with artificial intelligence becoming the main driving force. However, the timeframe for connecting to centralized power grids in the U.S. is stretching for three to seven years, and data centers are losing billions of dollars, the company writes. Power "behind the meter" is no longer a backup source, but a strategic necessity, Xos says.

Its development can provide power just a few days after delivery, the press release said. It will also help avoid load fluctuations. The solution is scalable and suitable for both individual facilities and entire campuses, the manufacturer assures. Moreover, since the Power Hub is being built on the same architecture as the Xos mobile charging platform for electric vehicles, everything is already ready for release.

Since the June 3 rally, Wall Street's average target price has been 46% below the stock's value. The company is being followed by two analysts, one who recommends buying its securities and one who recommends holding.