Category: Technology

SoftBank Commits $100 Billion to US Tech and Jobs Under Trump Administration

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– SoftBank commits to a $100 billion investment in the US over the next four years, focusing on artificial intelligence and related infrastructure.
– The pledge promises the creation of 100,000 jobs in sectors like AI, semiconductors, and energy.
– The announcement follows SoftBank’s earlier ties with President Trump, marking a continuation of high-profile investment commitments to the US.

At a high-profile event in Mar-a-Lago, President-elect Donald Trump announced that SoftBank Group Corp. would commit to a $100 billion investment in the United States over the next four years. This pledge, made in partnership with SoftBank CEO Masayoshi Son, signals a strong belief in the country’s economic future, according to Trump.

During the event, Trump expressed his excitement, attributing the investment to the “confidence” that the election results instilled in Son and SoftBank. “He’s doing this because he feels very optimistic about our country since the election,” Trump said. Son echoed these sentiments, emphasizing his confidence in the US economy, stating, “I would really like to celebrate the great victory of President Trump.”

The investment plan focuses on creating 100,000 jobs, particularly in areas like artificial intelligence (AI), data centers, semiconductors, and energy infrastructure. These sectors are expected to thrive as AI technologies advance, offering substantial economic benefits while supporting the digital transformation of industries.

The announcement marks SoftBank’s most significant commitment to the US since its previous involvement during Trump’s first term. In 2016, Son pledged to create 50,000 jobs as part of a $50 billion investment, which saw SoftBank backing US companies through its Vision Fund. Despite the challenges SoftBank faced with some of its investments, such as the infamous WeWork debacle, the company is once again positioning itself as a key player in US economic growth.

Trump’s administration previously attracted major corporations to the US with promises of corporate tax cuts and deregulation. This time, he has reiterated the importance of boosting domestic investment by foreign companies, including proposals to expedite the permitting process for projects exceeding $1 billion. While it remains to be seen how these promises will unfold, they are seen as a key element in Trump’s efforts to revitalize US manufacturing and technology sectors.

However, questions linger regarding the authenticity and financial feasibility of the SoftBank pledge. While SoftBank has been raising capital for a $100 billion chip venture focused on AI, it remains unclear how much of the new investment is genuinely fresh. At the end of September, SoftBank’s cash and equivalents totaled $25 billion, leaving a gap between available resources and the pledged amount. Despite these concerns, SoftBank’s recent success with the IPO of its chip design company, Arm Holdings, valued at around $160 billion, provides a solid foundation for future investments.

Son, who recently invested $500 million in OpenAI, plans to further expand his ventures in AI, which he believes will revolutionize every industry. As for the ambitious pledge, Son jokingly responded to Trump’s challenge to increase the commitment to $200 billion, saying, “I will really try.”

In the wake of Trump’s victory, the announcement of this major investment underlines SoftBank’s continued influence in shaping the US tech landscape, as well as Son’s belief in the transformative power of AI to drive future economic growth.

Broadcom Stock Surges on “Massive” AI Growth Prospects

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Broadcom (AVGO) shares soared over 20% following strong AI chip revenue projections.
– CEO Hock Tan revealed AI chips could generate up to $90 billion in revenue over three years.
– The company’s market cap surpassed $1 trillion, driven by AI-driven optimism.

Broadcom’s stock skyrocketed over 20% on Friday, hitting an all-time high, after the company unveiled robust expectations for its custom AI chips. CEO Hock Tan highlighted the company’s significant opportunities in the artificial intelligence sector during the latest earnings call, describing the potential revenue from its AI chip business as “massive.”

Tan announced that Broadcom anticipates $60 billion to $90 billion in revenue from its AI chips over the next three years, fueled by demand from three existing hyperscaler customers. While the company declined to name these clients, Tan projected that each would deploy one million clusters of Broadcom’s AI XPUs by 2025. Furthermore, the company confirmed that it has added two new hyperscaler clients who are advancing the development of next-generation AI chips. Industry reports suggest that these new customers may include OpenAI, the creator of ChatGPT, and Apple, both of whom are reportedly exploring custom AI chip solutions to enhance their capabilities and reduce reliance on GPU leader Nvidia.

Broadcom’s share price surged past $220 during Friday’s trading session, boosting its market capitalization to over $1 trillion. The stock’s remarkable rise—up approximately 98% for the year—reflects robust investor confidence in the company’s ability to capitalize on growing demand for AI chips. This surge comes amidst heightened interest in AI technologies, which have become a focal point for tech giants looking to gain competitive advantages.

The company’s financial performance further underscores the significance of its AI initiatives. While Broadcom’s overall semiconductor revenue grew 12% year-over-year to $8.2 billion in the fourth quarter, the numbers reveal a sharp divergence between AI and non-AI segments. Revenue from AI chip sales surged 150% to $3.7 billion, while non-AI semiconductor revenue declined 23% to $4.5 billion. Broadcom’s CEO acknowledged this disparity, emphasizing that the AI semiconductor business will likely outpace the non-AI segment in the coming years.

This trend aligns with broader market dynamics, as the AI chip sector is poised for rapid growth. According to consulting firm International Business Strategies, the AI chip market is projected to expand by 74% in 2025, far outpacing the 12% growth expected for the semiconductor industry as a whole. Analysts believe this trend will persist through the decade as businesses increasingly adopt AI-driven technologies.

Despite these optimistic projections, some analysts exercised caution. Bernstein analyst Stacy Rasgon raised his price target for Broadcom to $250, highlighting the company’s strong performance and potential, but also noted that its high valuation could limit upside potential in the near term. Similarly, Raymond James analyst Srini Pajjuri maintained a neutral stance, citing concerns about Broadcom’s current trading level, which is approximately 33 times its projected fiscal year 2025 earnings.

Broadcom’s achievements reflect its strategic positioning in the AI ecosystem, supported by strong partnerships with leading technology firms. The company’s role in developing advanced chips for data centers, consumer electronics, and enterprise applications ensures its relevance in a competitive landscape. However, challenges persist. While Big Tech companies are investing heavily in AI infrastructure, questions remain about the sustainability of these expenditures, particularly as some firms struggle to monetize AI technologies effectively.

As the industry continues to evolve, Broadcom’s ability to maintain its competitive edge will be crucial. With its innovative AI chip offerings and strategic collaborations, the company is well-positioned to navigate the complexities of a rapidly growing market. Whether it can sustain its momentum amid high expectations remains a pivotal question for investors and industry observers alike.

Conduent (CNDT) – Highlights from NobleCon20

Posted on by cpereira@noblefcm.com


Friday, December 13, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

NobleCon20. On December 3, management presented at NobleCon20 at Florida Atlantic University (FAU) in Boca Raton, Florida. Giles Goodburn, Global Head of FP&A and Investor Relations, highlighted the company’s ongoing transformation to a leaner, more focused organization. A replay of the presentation can be found here.

Business transformation underway. Since the start of 2024, the company has completed several divestitures totaling roughly $780 million in net proceeds. This has allowed the company to make significant balance sheet improvements. The company is also in the process of cutting corporate overhead and various stranded costs following the recent divestitures. Moreover, with an infusion of new business leaders across its three segments we believe the company is positioning itself for future revenue growth as a more focused and efficient organization.  


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Google Stock Surges Following Quantum Computing Breakthrough

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Google’s Willow chip solves complex equations in minutes, outperforming classical supercomputers by billions of years.
– The breakthrough reduces error rates in quantum systems, a major step toward practical applications in cybersecurity, energy, and medicine.
– Alphabet stock is up 30% year-to-date, with a 4% jump following the announcement of Willow.

Google’s stock (GOOG) surged 4% on Tuesday following the announcement of its new quantum computing chip, Willow. The groundbreaking chip, revealed Monday, promises to revolutionize computing by outperforming traditional systems on an unprecedented scale. According to Google, Willow can solve complex equations in just five minutes—calculations that would take a classical supercomputer longer than the history of the universe to complete.

Quantum computing represents a major technological leap, relying on qubits instead of the binary bits used in classical systems. Unlike bits, which can only represent a 0 or a 1, qubits can exist in both states simultaneously. This characteristic enables quantum computers to process vastly more data at once, making them ideal for solving problems that conventional computers cannot.

However, the potential of quantum computing has been hampered by significant challenges. Qubits are prone to errors, which increase as the number of qubits used grows. Google’s Willow chip addresses these challenges, reducing error rates while increasing the number of operational qubits. This advancement brings the industry closer to achieving practical applications for quantum computing.

Google’s announcement not only reaffirms its leadership in the quantum computing race but also highlights its competition. Industry giants like IBM, Microsoft, and Amazon have invested heavily in quantum technology, each vying to lead in the next wave of computing. IBM has been working on quantum systems since the 1980s, while Amazon and Microsoft are integrating quantum capabilities into their cloud platforms.

The potential applications of quantum computing are vast, spanning industries such as healthcare, energy, and cybersecurity. Quantum systems could accelerate drug discovery, develop new renewable energy technologies, and create more robust cybersecurity measures. While these applications remain largely theoretical, Google’s advancements with Willow mark significant progress toward turning them into reality.

The unveiling of Willow has had a tangible impact on investor sentiment. Alphabet’s stock rose as much as 6% early Tuesday before stabilizing at a 4% gain, contributing to a 30% year-to-date increase in the stock. This growth reflects investor confidence in Google’s ability to stay at the forefront of innovation.

Governments worldwide are also ramping up investments in quantum computing. The U.S. has pledged billions of dollars toward research through initiatives like the CHIPS and Science Act. Most recently, bipartisan senators introduced legislation to allocate an additional $2.7 billion to support quantum computing projects. Meanwhile, China leads global spending, investing over $15 billion in quantum research.

Despite the optimism, experts predict fully fault-tolerant quantum computers—systems ready for widespread practical use—may not emerge until after 2035. However, companies like Google are betting on a faster timeline. Willow’s launch demonstrates that the race to quantum supremacy is not just theoretical but an active competition with transformative stakes.

As Google continues to push boundaries with Willow, the company’s leadership in quantum computing solidifies its reputation as an innovation powerhouse. This milestone not only positions Google at the cutting edge of technology but also strengthens its standing in the global race to unlock the full potential of quantum computing.

Information Services Group (III) – Highlights from NobleCon20

Posted on by cpereira@noblefcm.com


Tuesday, December 10, 2024

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

NobleCon20. Information Services Group CEO Michael Connors and CFO Michael Sherrick presented at NobleCon20. Management highlighted the opportunity in AI, including ISG Tango, and driving recurring revenue. A rebroadcast is available at https://www.channelchek.com/videos/information-services-group-noblecon20-replay.

Growth in AI. The opportunity in AI for ISG is prevalent, as management noted that 55% of large enterprises are focused on developing an AI roadmap today. This focus translates into a roughly 3 times increase in projected enterprise AI spending through 2025. ISG has two services in AI Advisory and Research that companies can utilize for the application of AI and to be informed on the best use cases. In our view, ISG is well-equipped to handle increased demand through its services.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

DLH Holdings (DLHC) – New Administration Brings More Opportunity

Posted on by slightbourne@noblecapitalmarkets.com


Monday, December 09, 2024

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q Results. Reported revenue was $96.4 million compared to $101.5 million from last year and below our $101 million estimate. Net income for the quarter was $2.3 million, or $0.16/sh, compared to a net loss of $2.6 million, or $0.18/sh, last year. Adjusted EBITDA was $10.7 million, down from $12.1 million last year but above our estimate of $10.5 million.

CMOP. Management noted that the Company’s CMOP portfolio is under new task orders that go into the second quarter of 2025. Significantly, the Company has not continued its joint venture bids for specific locations, citing performance dilution. We expect DLH to bid on fewer CMOP contracts, resulting in lower CMOP revenue, likely once past the current extension.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Unlocking the Potential of AI at NobleCon20: A Spotlight on the AI Panel

Posted on by slightbourne@noblecapitalmarkets.com

As NobleCon20 approaches, excitement is building for an event packed with innovative discussions, strategic networking, and industry insights. Among the many highlights of this year’s conference is the AI panel, featuring Zack Kass as the keynote speaker, alongside a lineup of distinguished panelists. Scheduled for Tuesday, December 3rd, this panel promises to provide an unmissable deep dive into the transformative power of artificial intelligence (AI) and its implications across industries.

A Keynote That Defines the Future

The AI panel kicks off with a keynote address by Zack Kass, the former Head of Go-To-Market at OpenAI, the pioneering organization behind ChatGPT. Kass has been at the forefront of AI innovation, contributing to the development and adoption of generative AI technologies that are reshaping the way we live and work. With over 14 years of experience in emerging technologies, he brings a unique perspective on how AI is catalyzing a new industrial revolution, akin to a modern renaissance.

In his keynote, Kass will explore the practical applications of AI, moving beyond the theoretical “art of the possible” to the tangible “world of the practical.” From empowering businesses to enabling breakthroughs in various fields, Kass will offer valuable insights into how AI is not only a tool but a transformative force poised to redefine humanity’s future.

The Panelists: Experts at the Intersection of AI and Industry

Following his keynote, Kass will join a moderated panel of AI leaders, including:

  • Vin Singh, Chairman & CEO of BullfrogAI Holdings, Inc. Singh’s company leverages causal AI to streamline drug development, reducing clinical trial failure rates and advancing therapeutics. His work showcases AI’s potential to revolutionize healthcare and biotechnology.
  • Jonathan Cohen, Head of Life Sciences Industry Go-To-Market at ServiceNow. Cohen specializes in using AI to drive digital transformation in life sciences. His career spans roles at industry leaders like Wipro Limited, Medidata Solutions, and McKinsey & Company, making him a key voice in the integration of AI into enterprise operations.
  • Elycia Morris, CEO of Synergist Technology. Morris leads the way in AI governance and compliance through Synergist’s AFFIRM platform, helping organizations navigate the complex regulatory landscape of AI deployment. With a background that includes leadership roles at the Pentagon, Apple, and General Electric, she brings unmatched expertise in operational efficiency and technological innovation.

Why This Panel Matters

AI’s rapid advancement is changing the global landscape, and its influence is inescapable. This panel aims to demystify AI for non-technologists while offering strategic insights to C-suite executives, entrepreneurs, and investors. The discussion will delve into pressing topics such as:

  • The gap between AI potential and practical implementation
  • Strategies for data monetization and overcoming common hurdles
  • The moral and economic implications of AI adoption
  • Governance frameworks to ensure ethical AI growth

As organizations struggle to achieve their AI aspirations—nearly 73% fail to meet their data strategy goals—this panel provides a roadmap to success. From understanding the hype versus reality to preparing for AI-driven change, attendees will leave equipped with actionable knowledge to stay ahead in the AI era.

NobleCon20: A Platform for Growth and Innovation

This year marks Noble’s 40th anniversary and the 20th NobleCon, held at the state-of-the-art COBEE facility at Florida Atlantic University. Known for its integration of business, education, and investing, NobleCon continues to be the premier event for showcasing emerging growth companies and thought leaders.

The AI panel is just one of many reasons why NobleCon20 is the “orchard” for discovering the next game-changing opportunities. Whether you’re a high-net-worth individual, institutional investor, or entrepreneur, this conference is designed to inspire, inform, and connect.

Mark your calendars for December 3rd, and don’t miss the chance to gain invaluable insights from the brightest minds in AI. At NobleCon20, the future of business, technology, and humanity converges.

Click here to register for NobleCon20

Snowflake’s AI Surge: Wedbush Upgrade Sparks Stock Momentum

Posted on by slightbourne@noblecapitalmarkets.com
Key Points
– Wedbush upgrades Snowflake to “outperform” with a $190 price target, citing AI-driven growth opportunities.
– Snowflake’s transition from optimization to expansion positions it to benefit from increased demand for AI applications.
– Analysts emphasize broader software sector opportunities, also upgrading Elastic and raising targets for Palantir and Salesforce.

Shares of Snowflake Inc. (SNOW) rose by approximately 3% on Monday after Wedbush analysts upgraded the stock, citing the company’s strategic position in the rapidly growing artificial intelligence (AI) sector. The firm upgraded its rating from “neutral” to “outperform” with a new price target of $190, highlighting Snowflake’s potential to capitalize on AI-driven opportunities in the software market.

Wedbush emphasized that the “AI Software era is now here,” marking a significant shift in the tech landscape. According to the analysts, the first phase of AI development was led by major players like Microsoft (MSFT), Amazon (AMZN), and Google parent Alphabet (GOOGL). The firm believes the market is now primed for broader adoption across the software sector, positioning companies like Snowflake to thrive.

Snowflake’s cloud-based data platform, known for its scalability and adaptability, places it in what Wedbush called the “sweet spot” for addressing booming demand for AI products. The analysts pointed out that Snowflake’s “optimization” phase has concluded, signaling a shift toward robust revenue growth driven by AI applications.

Wedbush predicts that AI use cases will play a significant role in boosting Snowflake’s performance over the next 12 to 18 months, particularly as the company moves into fiscal year 2026. The demand for advanced data management and analytics, key enablers of AI capabilities, is expected to accelerate, creating a substantial tailwind for Snowflake’s product revenue.

Wedbush also upgraded other companies in its report, including data analytics firm Elastic (ESTC), and increased price targets for Palantir Technologies (PLTR) and Salesforce (CRM). The analysts noted that this wave of AI-driven growth presents a unique opportunity for software companies to “get in on the AI party,” as demand for intelligent systems becomes ubiquitous across industries.

Despite Snowflake’s recent gains, the stock remains down by 13% year-to-date. However, the upgrade signals growing confidence in the company’s long-term prospects as it pivots to capitalize on AI momentum.

Release – Conduent Recognized as a Leader in the U.S. and Europe in ISG Customer Experience Services Provider Lens Report

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CNDT

November 21, 2024

4 th Consecutive Year Conduent Named Leader in Customer Experience Services Provider Lens Report

FLORHAM PARK, N.J. — Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, today announced that Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, has recognized Conduent as a U.S. and Europe “Leader” in its 2024 Contact Center – Customer Experience Services Provider Lens™ report.

The 2024 report recognized Conduent as a “Leader” in both the U.S. and Europe in three quadrants: Digital Operations, Intelligent Agent Experience and Intelligent CX (AI and Analytics). This is the fourth consecutive year that CX Provider Lens has ranked Conduent as a “Leader.”

Among Conduent’s customer experience (CX) strengths identified in each quadrant, the ISG Provider Lens report highlighted:

Digital Operations: Conduent’s CXNow solution is a cloud-based technology platform that caters to the entire customer journey, from sales and support to technical assistance, payments and loyalty programs. Using a standardized agent model for comprehensive call center management, CXNow integrates technology, personnel, and AI-driven processes to provide personalized 24/7 omnichannel experiences.

Intelligent Agent Experience: Conduent’s CX analytics solutions use AI and machine learning technologies to offer valuable insights into complex customer interactions and experiences. By analyzing call and text data plus using sentiment analytics and predictive analytics, the solution identifies trends and drivers for improving performance, optimizing agent interactions, as well as anticipating next actions and resolving issues.

Intelligent CX (AI and Analytics): AI and analytics play a pivotal role in enhancing operational efficiency, improving productivity and achieving better customer satisfaction. Conduent delivers digital interactions including voice, webchats and texts, while providing a personalized experience. Cognitive AI and machine learning enable automated conversations, utilizing advanced search capabilities and custom data analysis models.

“As one of the leading players in the CX space, Conduent manages over two billion conversations by effectively leveraging its three decades of domain expertise and tailored digital solutions catering to key verticals such as healthcare and public sector. Conduent provides innovative AI-driven solutions for CX services. It offers AI-integrated solutions, virtual agents and omnichannel analytics, while efficiently delivering advanced CX,” said Kenn Walters, ISG Global Lead Analyst and Executive Advisor.

“We tailor our CX solutions to deliver elevated customer experiences, optimized operations and reduced costs. We focus on the end-to-end customer experience, improving quality and satisfaction to help drive business outcomes for our clients,” said Ryan Collins, Vice President and General Manager for Customer Experience Management at Conduent. “We are always striving to enhance our capabilities and are proud to achieve leader status in the CX Provider Lens report for four straight years, demonstrating the consistent value and performance that our technologies, workflows and teams deliver to clients.”

Read a custom version of the report, at https://insights.conduent.com/reports/conduent-cx-recognized-as-a-leader-in-the-2024-isg-provider-lens-for-customer-experience-services.

About Conduent

Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 55,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com.

Note: To receive RSS news feeds, visit www.news.conduent.com. For open commentary, industry perspectives and views, visit http://twitter.com/Conduent, http://www.linkedin.com/company/conduent or http://www.facebook.com/Conduent.

Trademarks

Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

Media Contacts

Lisa Patterson

Conduent

lisa.patterson@conduent.com

+1-816-305-4421

Giles Goodburn

Conduent

ir@conduent.com

+1-203-216-3546

C3.ai’s Microsoft Partnership Signals a New Era for AI Innovation

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– A new partnership with Microsoft is set to further enhance C3.ai’s ability to deliver enterprise AI solutions at scale.
– Fiscal Q2 revenue is projected to grow up to 28% year-over-year, continuing a six-quarter acceleration trend.
– C3.ai’s success underscores the growing potential for smaller-cap AI companies leveraging strategic partnerships to disrupt traditional industries.

C3.ai, a pioneer in enterprise artificial intelligence (AI), is positioned for significant growth as its fiscal second-quarter earnings for 2025 approach on December 9. The company has recently announced an expanded collaboration with Microsoft, further solidifying its role as a leader in delivering AI solutions at scale. This new partnership will integrate C3.ai’s powerful suite of AI applications with Microsoft Azure, providing seamless access for Azure users. By leveraging Microsoft’s extensive global reach and cloud infrastructure, C3.ai aims to simplify AI adoption for enterprises across diverse industries, enhancing its ability to meet growing demand.

The announcement underscores the importance of strategic alliances in the rapidly evolving AI sector. For C3.ai, partnerships have long been a cornerstone of its strategy, as evidenced by existing relationships with Amazon Web Services and Google Cloud. These collaborations enable the company to offer scalable, user-friendly solutions like inventory optimization, predictive maintenance, and supply chain analytics to a wide range of industries, including manufacturing, financial services, and energy. The partnership with Microsoft elevates this approach, offering additional co-marketing opportunities and joint customer engagements that could significantly expand C3.ai’s customer base.

C3.ai’s journey highlights a broader trend within the AI industry, where smaller-cap companies are leveraging partnerships to carve out their niches and drive adoption. Companies like BigBear.ai, SoundHound AI, and Veritone are adopting similar strategies to gain traction in specialized markets. For example, BigBear.ai’s focus on AI analytics for defense logistics and SoundHound’s integration of voice AI in automotive and consumer electronics show how smaller firms can use partnerships to scale and innovate. These parallels reinforce the idea that C3.ai’s approach could serve as a playbook for other emerging growth companies in the AI space.

This momentum comes on the heels of C3.ai’s transition to a consumption-based pricing model, a strategic pivot that has significantly accelerated revenue growth. While the shift initially caused a slowdown as customers adapted to the new model, the benefits are now evident. The company has delivered six consecutive quarters of revenue growth acceleration, with its fiscal first quarter of 2025 generating $87.2 million—a 21% year-over-year increase. Projections for the second quarter suggest revenues could climb as high as $91 million, reflecting a year-over-year growth rate of up to 28%. This continued momentum highlights the growing demand for C3.ai’s AI solutions across multiple sectors.

Despite its strong performance, C3.ai’s stock remains undervalued, trading at a price-to-sales ratio of 9.7, well below its historical average of 16.1. If the company’s upcoming earnings report exceeds expectations, the stock could rally significantly, potentially regaining a valuation more aligned with its long-term average. This potential upside is particularly compelling given the broader market opportunity in AI, which Bloomberg estimates will reach $1.3 trillion by 2032. C3.ai CEO Thomas Siebel has likened the AI revolution to transformative technological shifts like the internet and the smartphone, emphasizing the long-term value this sector could deliver.

The expanded Microsoft partnership, accelerating revenue growth, and increasing demand for enterprise AI solutions position C3.ai as a key player in this multiyear technological evolution. As its financial results and partnerships continue to evolve, C3.ai represents not just a compelling individual opportunity but also a broader reflection of the transformative potential of AI in reshaping industries and creating new market leaders. Investors eyeing the December 9 earnings report will find themselves at the intersection of innovation and opportunity, watching a leader in the space solidify its position while paving the way for the next wave of growth in enterprise AI.

Nvidia’s Q3 Earnings in Focus: AI Boom Continues, But Challenges Loom

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Nvidia’s Data Center revenue expected to hit $29 billion, doubling year-over-year.
– Demand for Blackwell chips outstrips supply as production challenges persist.
– Proposed tariffs on Taiwan-made chips threaten Nvidia’s costs and margins.

Nvidia, the world’s largest publicly traded company by market cap, is set to report its third-quarter earnings today, and investors are bracing for what could be another blockbuster performance fueled by artificial intelligence (AI). Analysts project Nvidia will report earnings per share (EPS) of $0.74 on revenue of $33.2 billion, a staggering 83% year-over-year increase. This incredible growth highlights Nvidia’s position as a market leader in the rapidly expanding AI sector, where demand for cutting-edge chips continues to skyrocket.

Nvidia’s dominance in the AI chip market has driven its meteoric rise throughout 2024, with its stock up an impressive 192% year-to-date. As companies across industries increasingly adopt AI-driven solutions, Nvidia’s technology has become indispensable, powering advancements in areas ranging from autonomous vehicles to generative AI tools like ChatGPT. Investors are eager to see if the company can maintain its momentum while navigating the challenges posed by geopolitical and supply chain issues.

The company’s Data Center segment has been a key driver of its success and is expected to deliver $29 billion in revenue for Q3, representing a remarkable 100% increase compared to the same period last year. Nvidia’s GPUs are the backbone of AI computing, enabling the training and deployment of sophisticated AI models. This has made the company a go-to provider for enterprises and tech giants seeking to harness the transformative power of AI.

While AI-related revenue has been the cornerstone of Nvidia’s growth, its gaming segment remains an important contributor, with revenue projected to reach $3 billion, up 7% year-over-year. The sustained demand for GPUs among gaming enthusiasts and professionals demonstrates the versatility and widespread application of Nvidia’s technology. Yet, the spotlight remains firmly on the AI sector, where Nvidia’s innovations continue to lead the industry.

However, the company faces looming uncertainties that could impact its future trajectory. Nvidia’s reliance on Taiwanese chipmaker TSMC for the production of its cutting-edge chips exposes it to geopolitical risks. President-elect Donald Trump’s proposal to impose tariffs on Taiwan-made chips could result in higher production costs for Nvidia, potentially squeezing margins or forcing the company to pass on the additional costs to customers. These potential tariffs come amid broader efforts to bolster domestic semiconductor production in the United States through initiatives like the CHIPS Act. Investors will be watching closely for any guidance from Nvidia’s CEO, Jensen Huang, on how the company plans to address these challenges.

Adding to these concerns are supply chain issues affecting Nvidia’s latest Blackwell chips, which are designed to meet the surging demand for AI applications. Reports of overheating servers have delayed shipments, creating uncertainty about the timeline for broader adoption of these next-generation chips. Despite these setbacks, Nvidia remains optimistic about the future of Blackwell and expects substantial revenue contributions from the line in the coming quarters.

Even with these challenges, Nvidia continues to dominate Wall Street’s attention. Analysts expect strong guidance for Q4, with projected revenues of $37 billion. Whether Nvidia’s stock continues its impressive ascent will depend on how effectively the company manages its challenges while capitalizing on the tremendous growth opportunities presented by the AI revolution.

Release – Comtech Appoints Daniel Gizinski as New President of Satellite & Space Communications Segment

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

CHANDLER, Ariz. – November 19, 2024– Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”), a global technology leader, announced today the appointment of Daniel Gizinski as President of the Company’s Satellite & Space Communications (“S&S”) segment. With extensive industry leadership experience and a collaborative, hands-on approach to solving customer challenges, Gizinski will play a central role in advancing Comtech’s S&S strategy, including its expanding portfolio of next-generation satellite solutions and vision as a pure-play satellite and space communications company.

Gizinski brings over 15 years of experience in satellite communications engineering, operations, product strategy and executive management to his new role as President of the S&S segment, including key leadership positions throughout the Comtech organization. With a proven track record of driving growth and fostering innovation, he will oversee all aspects of the S&S segment, including product development, operations, and market expansion.

Gizinski will also lead new initiatives to strengthen Comtech’s global partnerships and enhance the Company’s S&S offerings to meet the evolving demands of government, commercial, and international markets.

“I am honored to have Daniel’s proven and trusted leadership in this critical executive role, as he guides Comtech’s space and satellite business and confidently creates and capitalizes on new opportunities to deliver on our commitments to customers, partners, and shareholders around the world,” said John Ratigan, President and CEO of Comtech. “Daniel’s appointment as President of S&S will also be central to helping Comtech realize our vision as a pure-play satellite and space communications company. His deep customer relationships and unique understanding of industry growth trajectories will help ensure Comtech continues to drive innovation and meet the needs of customers for decades to come.”

Gizinski’s appointment underscores Comtech’s ongoing commitment to delivering trusted, resilient multi-orbit connectivity and communications solutions to some of the world’s most demanding customers.

“Comtech’s S&S business is well positioned to capitalize on our ongoing industry transformation,” said Daniel Gizinski, President of Comtech’s S&S segment. “I am a firm believer in having a customer-first mentality, and as a trusted ally of our partners, I will continue to roll up my sleeves and collaborate with our commercial and government customers to solve their toughest challenges. I look forward to leading this team as we execute on John’s vision and plan to make Comtech a pure-play satellite and space company, ensuring we have the right people, processes, and solutions needed to rapidly deliver on the growing demands we’re seeing from our customers.”

Prior to his appointment as President of the Company’s S&S segment, Gizinski served as Chief Strategy Officer and President of the Comtech Satellite Network Technologies (“CSNTI”) division. Gizinski also held prior appointments as the Company’s Chief Strategy Officer from 2022-2024 and President of CSNTI in 2022.

During his tenure at Comtech, he has held various senior management positions, including serving as Vice President of Product and Strategy for Comtech Systems, Inc. Earlier in his career, Gizinski held program management and leadership roles at General Electric, Sierra Nevada Corporation, and L3Harris Technologies. Gizinski holds a bachelor’s degree in electrical engineering from the University of Virginia and a master’s degree from Duke University.

Comtech’s S&S segment is a U.S.-based, leading provider of advanced modems and high-power amplifier technologies, and a market leader in troposcatter technologies. The S&S segment has an innovative portfolio of these mission-critical technologies and serves some of the world’s largest defense contractors and allied foreign governments, as well as multiple U.S. government agencies, including branches of the U.S. Armed Forces, U.S. Department of Defense and U.S. Space Force, among others.

About Comtech

Comtech Telecommunications Corp. is a leading global technology company providing terrestrial and wireless network solutions, next-generation 9-1-1 emergency services, satellite and space communications technologies, and cloud native capabilities to commercial and government customers around the world. Our unique culture of innovation and employee empowerment unleashes a relentless passion for customer success. With multiple facilities located in technology corridors throughout the United States and around the world, Comtech leverages our global presence, technology leadership, and decades of experience to create the world’s most innovative communications solutions.For more information, please visit www.comtech.com.

Forward-Looking Statements

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

Investor Relations Comtech

Maria Ceriello

631-962-7115

Maria.Ceriello@comtech.com

Media Contact Comtech

Jamie Clegg

480-532-2523

jamie.clegg@comtech.com

Comtech Telecommunications (CMTL) – Agreement Made with Dissident Former CEOs

Posted on by cpereira@noblefcm.com


Tuesday, November 19, 2024

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Agreement Made. Yesterday, Comtech announced it entered into a cooperation agreement with former CEOs Michael Porcelain and Fred Kornberg, along with Oleg Timoshenko (the “Investor Group”), to appoint Michael Hildebrandt to the Board of Directors. Mr. Hildebrandt was one of the nominees chosen by the Investor Group to be appointed to the Board in a 13D filing through the SEC in September 2024.

Mr. Porcelain on as Advisor. Along with the appointment of Mr. Hildebrandt, Mr. Porcelain is authorized as an advisor to the Company. He will be entitled to periodically engage in discussions with the Company and provide advice or recommendations. We believe adding Mr. Porcelain as an advisor is a positive as the former CEO has a wealth of knowledge on the Company’s end markets and its processes.


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