Technology

Adobe Stock Is an Unappreciated AI Play. It’s Time to Buy. — Barrons.com

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By Jacob Sonenshine Adobe’s earnings report painted a pretty picture of its ability to turn artificial intelligence into paying customers. But the reaction to its disappointing guidance was anything but pretty. That has created a buying opportunity in its stock. There was a lot to like about Adobe’s third-quarter results, with both earnings and sales easily topping estimates. The market, though, focused on management’s somewhat disappointing outlook, which included a forecast for “net new annual recurring revenue” — representing the sales Adobe expects to bring in from new customers or from increasing monthly subscription payments — to come in at $550 million in the fourth quarter, up 9% quarter over quarter. The fourth quarter usually sees double-digit growth, and the stock tumbled 13% after the report. It has since settled around $510. The market reaction was understandable, if dubious. The lower-than-expected guidance could be a sign that competition from other […]

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Salesforce Unveils New AI Strategy, Will Charge $2 per Conversation

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Salesforce (CRM) unveiled a new business model in which it will charge $2 per conversation held by its new generative AI-powered bots, Bloomberg reported Tuesday. The business model represents a change for Salesforce from building human-assisting AI tools to increasing dependence on AI-powered bots, the Bloomberg report said.

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Salesforce Needs to Sell Its Latest AI Vision — Heard on the Street — WSJ

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Low expectations make for unfamiliar ground at Salesforce. Given the uncertainty that artificial intelligence has cast over the cloud software industry, they may also be welcome. As Salesforce kicks off its annual confab known as Dreamforce this week, the pioneer of the software-as-a-service — or SaaS — category finds itself with a lot to prove. Years of turbocharged revenue growth through relentless sales deals and acquisitions has finally slackened, with Salesforce’s revenue expected to rise at a single-digit percentage for the first time ever in the current fiscal year. That has put a bit of a cloud over the company’s stock price, which is down about 2% since the start of the year. At least Salesforce has plenty of company. Adobe, Workday, Atlassian and Snowflake are just a few of the SaaS providers that have seen their shares take a hit; the BVP Nasdaq Emerging Cloud Index has shed more

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Buy Broadcom Stock. Its $12 Billion in AI Revenue Has Room to Grow, Analyst Says.

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Broadcom stock has already risen by nearly half this year, but it can trade even higher fueled by growth in revenue related to artificial intelligence, a William Blair analyst says. Broadcom is the market’s second-favorite AI chip play behind Nvidia. Its shares have gained 46% this year given its position as one of the leading players designing chips for companies such as Alphabet’s Google unit and Meta Platforms, which are all-in on building enormous AI data centers. In its latest call to discuss earnings, earlier this month, management said it is targeting $12 billion in AI revenue for the 2024 fiscal year, which ends in October, up from $11 billion earlier. There was no numerical forecast for next year, but the company expects continued “strong growth.” On Wednesday, in a research note, William Blair’s Sebastien Naji wrote that he sees “room for continued steady growth going into fiscal 2025 and

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Microsoft Announces $60 Billion Share Buyback, Hikes Dividend. The Stock’s Rising.

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Microsoft had good news for investors as the software giant announced plans for an increased shareholder payout as well as a new share buyback program. It said late Monday that it is increasing its quarterly dividend by 10% compared with last quarter, to 83 cents a share. The dividend is payable on Dec. 12 to shareholders of record on Nov. 21. The board of directors at the software giant also approved a new share repurchase program of up to $60 billion. The program has no expiration date and can be terminated at any time. Share buybacks are seen as good for shareholders as the amount of outstanding shares decreases, which tends to increase the nominal value per share. Microsoft reported fourth-quarter results on July 30 that largely matched analysts’ estimates. Shares, however, fell immediately after the release, reflecting the market’s high expectation of the legacy software company. The stock was

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Stage Set for Tech Stocks to Rise, Wedbush Says

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With the tech supply chain gearing for unprecedented growth driven by the roughly $1 trillion of AI capex, the stage is set for tech stocks to rise into year-end and 2025, Wedbush analysts say in an industry note. The analysts estimate that for every $1 spent on an Nvidia GPU chip, there is a $8-$10 multiplier across the tech sector. While Nvidia and Microsoft are core drivers of AI, many other tech companies including Palantir, Salesforce, Dell, IBM, Apple, and AMD are now joining the AI party. “As more tech vendors show the monetization piece of AI this will ultimately drive the next leg of the tech bull market in a very stable overall IT spending environment that is a bullish backdrop for tech stocks in our opinion,” they add.

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Adobe’s Outlook May Signal Pressure From AI And Competition

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Adobe’s lighter-than-expected guidance may reflect the impact on its creative business from new competition and artificial intelligence, according to Melius Research analysts Ben Reitzes and Jack Adair in a research note. They say they’ve felt bewildered watching Adobe’s stock march higher almost every day for the past three months despite some concerning trends popping up in creative, but reality now seems to be sinking in for investors in light of the soft revenue outlook for F4Q. Adobe is sliding 8% to $539.84 in premarket trading. Still, the analysts say Adobe’s smaller document cloud business is continuously improving and overall 2024 is above guidance, while 3Q net new annually recurring revenue was above normal.

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Nvidia Stock Slips. Why Oracle’s Data Center Drive Is a Sign of Robust Chip Demand.

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Nvidia has lost some of its shine recently, and shares were falling again early Wednesday. But earnings from Oracle may prove to be a good sign for the chip maker. The stock slipped 0.6% to $107.43 in Wednesday’s premarket as investors waited for the latest batch of U.S. inflation data. The overall market was also retreating — futures for the benchmark S&P 500 index were down 0.3%. The Big Tech stock has racked up triple-digit gains in 2024 but is down 14% over the past three months on worries that an economic slowdown will stop AI demand from rising at such a breakneck speed, with underwhelming sales guidance issued at the end of last month adding fuel to the fire. Big-name asset managers like Fidelity and T. Rowe Price have been trimming their stakes in Nvidia, while CEO Jensen Huang has also sold some shares. Nevertheless, a strong set of

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Broadcom’s AI Growth Uneven but ‘Strong,’ Morgan Stanley Says

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Broadcom’s (AVGO) latest financial results showed that its artificial intelligence growth is not linear, but continues to be “strong,” Morgan Stanley said Friday. Late Thursday, the chipmaker logged stronger-than-expected fiscal third-quarter results, buoyed by demand for AI semiconductor solutions and its VMware acquisition. Broadcom expects full-year AI revenue of $12 billion, up from the previous outlook of more than $11 billion. Morgan Stanley previously estimated $12 billion in AI revenue and noted that Broadcom had characterized its application-specific integrated circuit, or ASIC, business as lumpy from quarter to quarter. “That lumpiness did play out, as the company saw AI processors flattish (quarter on quarter), with networking for AI up slightly,” the brokerage said in a Friday note to clients. “Importantly, growth is still close to 3x this year, and sequential growth resumes in October.” Morgan Stanley said that although it expects that buying at some of the largest users of

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Broadcom Poised for Upside to Quarterly Results Led by AI, VMware, Oppenheimer Says

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Broadcom (AVGO) could see upside to its latest quarterly results and guidance driven by artificial intelligence and VMware, Oppenheimer said Friday. The chipmaker is scheduled to report its fiscal third-quarter results Thursday. Oppenheimer expects earnings of $1.23 a share on sales of roughly $12.88 billion. Analysts polled by Capital IQ are looking for $1.20 and $12.96 billion, respectively. Broadcom’s semiconductor and software businesses are poised for sequential growth for the quarter, with the former likely logging a 7% annual rise, according to Oppenheimer. Within semiconductor, networking growth is likely to be driven by cloud service provider demand for custom AI application-specific integrated circuits, or ASICs, and Ethernet switches. The wireless division is likely to advance sequentially and annually ahead of the upcoming Apple (AAPL) iPhone 16 refresh, the brokerage said in a note to clients. Within wireless, the company’s server and storage business is expected to see an annual decline

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Nvidia Continues To Lead The Way But Competition Is Intensifying

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On Wednesday, Nvidia Corporation (NASDAQ:NVDA) issued a better-than-expected fiscal second quarter report. However, its shares fell after the report, but still remain about 150% up for the year as Nvidia continues to serve big companies like Microsoft (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla Inc (NASDAQ:TSLA). Second Quarter Highlights For the quarter ended in July, Nvidia reported its revenue surged 122% on a YoY basis as it topped $30 billion. After three straight quarters of YoY growth surpassing 200%, revenue of $30.04 billion still surpassed LSEG’s estimate of $28.7 billion. Net income more than doubled to $16.6 billion, or 67 cents per share while adjusted earnings per share of 68 cents surpassed LSEG’s estimate of 64 cents. The gross margin did slip to 75.1% from the first quarter’s 78.4%, but it is up compared to last year’s comparable quarter when it amounted to 70.1%. Data center

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Dell Technologies Inc. (DELL) Q2 2025 Earnings Call Transcript

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Dell Technologies Inc. (NYSE:DELL) Q2 2025 Earnings Conference Call August 29, 2024 4:30 PM ET Company Participants Rob Williams – Head, IR Jeff Clarke – Vice Chairman and COO Yvonne McGill – CFO Tyler Johnson – Senior VP and Treasurer Conference Call Participants Amit Daryanani – Evercore Ben Reitzes – Melius Research Erik Woodring – Morgan Stanley Toni Sacconaghi – Bernstein Asiya Merchant – Citi Samik Chatterjee – JPMorgan Michael Ng – Goldman Sachs Wamsi Mohan – Bank of America Aaron Rakers – Wells Fargo David Vogt – UBS Simon Leopold – Raymond James Steven Fox – Fox Advisors Operator Good afternoon, and welcome to the Fiscal Year 2025 Second Quarter Financial Results Conference Call for Dell Technologies, Inc. I’d like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies, Inc. Any rebroadcasting of this

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