Two major AI software have skyrocketed! Are you reviewing and buying behind NVIDIA sales? Salesforce and Accenture
The king of AI semiconductors $NVIDIA(NVDA.US$After it quickly climbed to the top position in the world in terms of market capitalization, it fell from 1st place on 6/20. The biggest software company $Microsoft(MSFT.US$has taken back the lead. This is because NVIDIA shares fell 3.5% on the 20th, while Microsoft only fell 0.1%.larger compositionAs,“AI hardware sales” V.S. “AI software purchases” are also hiddenI'll do it.
The 20th is not only NVIDIA, $Broadcom(AVGO.US$fell 3.8%, $Micron Technology(MU.US$Will fall 6.0%, etc.AI hardware stocksThe decline is conspicuous. Stock prices for these stocks continued due to the expansion of business performance due to the AI boom, but currently”The upward pitch is too fastThe number of voices saying” has begun to increase. The sense of caution about high prices intensified, and profit-making sales were pushed on the 20th. The next day, the 21st, was “triple witching,” and it seems that there was also caution against the turbulence associated with it.
In “triple witching,” options worth approximately 5.5 trillion dollars related to stock price indices, individual stocks, and exchange-traded funds (ETFs) reach maturity. Along with this, investors adjust their positions, so there is a possibility that turnover will rapidly increase and shake individual assets held. (Bloomberg)
On the other hand,AI software stocksThere was a sharp backlash on the 20th. $Salesforce(CRM.US$has risen 4.3%, $Accenture(ACN.US$has risen 7.3%. Whereas AI hardware stocks clearly showed benefits from AI, AI software stocks were uncertain in that respect, so stock prices were poor. But on the 20thAccenture unexpectedly announces strong sales of generative AI ordersThen,Review and buyIt's in.
Note, until now, there has been a clear sense of delay in stock prices for AI software stocks compared to AI hardware stocks due to concerns that the benefits of the AI boom are not likely to arrive yet. However,This fiscal seasonOKNot just Accenture, but other AI software stocks(for example $Oracle(ORCL.US$Ya $Adobe(ADBE.US$）Suggests that the benefits of AI are beginning to extendI did it. When compared to AI hardware stocks that have already risen above the target stock price, AI software stocks still have a large divergence rate from the target stock price, and there may still be room for review and purchase.
Company Overview
A leading global consulting company. We provide consulting services and solutions related to management and technology. Top of the industry in finance and accounting. The company anticipates major business opportunities for generative AI related businesses.
Performance trends(Financial results announced on 6/20)
3Q results and full-year guidance were lower than expected, and reservation amounts were up (generative AI contributed)
●Results for the fiscal year ending 3-5 months (3Q)
◆Sales: $16.47 billion, down 0.6% from the same period last year; market forecast: $16.56 billion (Bloomberg tally, same as below)
◆Adjusted EPS: $3.13, down 0.9% year over year; market forecast $3.14
◆Reservation value: $21.1 billion, up 23% year over year; market forecast: $17.69 billion
Of these, the amount of new orders received for generative AI was over 900 million dollars, surpassing just over 600 million dollars in the second quarter, and there is an upward trend
The number of clients receiving orders over $100 million increased by 7 compared to the same period last year
A leading global consulting company. We provide consulting services and solutions related to management and technology. Top of the industry in finance and accounting. The company anticipates major business opportunities for generative AI related businesses.
Performance trends(Financial results announced on 6/20)
3Q results and full-year guidance were lower than expected, and reservation amounts were up (generative AI contributed)
●Results for the fiscal year ending 3-5 months (3Q)
◆Sales: $16.47 billion, down 0.6% from the same period last year; market forecast: $16.56 billion (Bloomberg tally, same as below)
◆Adjusted EPS: $3.13, down 0.9% year over year; market forecast $3.14
◆Reservation value: $21.1 billion, up 23% year over year; market forecast: $17.69 billion
Of these, the amount of new orders received for generative AI was over 900 million dollars, surpassing just over 600 million dollars in the second quarter, and there is an upward trend
The number of clients receiving orders over $100 million increased by 7 compared to the same period last year
●Full year guidance
◆Sales: 1.5% to 2.5% increase compared to previous year; previous forecast (company side): 1% to 3% increase
◆Adjusted earnings per share: $11.85 to $12.00, previous forecast (company side): $11.97 to $12.20, market forecast: $12.08
◆Sales: 1.5% to 2.5% increase compared to previous year; previous forecast (company side): 1% to 3% increase
◆Adjusted earnings per share: $11.85 to $12.00, previous forecast (company side): $11.97 to $12.20, market forecast: $12.08
Focus on generative AI related businesses
At the financial results briefing on 6/20, the management teamFocus on generative AI, which is a new growth fieldIt was stated that it was.
At the financial results briefing on 6/20, the management teamFocus on generative AI, which is a new growth fieldIt was stated that it was.
Generative AI functions as a catalyst for companies to more actively pursue costs, build digital cores, and truly change the way we work, creating huge opportunities for us. The reason we can support clients in the AI field is that we provide a wide range of services such as strategy, consulting, and engineering, and are related across functions across 13 industries. The direction has also changed in terms of human resources. The number of data and AI experts was initially 40,000, but now there are 55,000. The target is 80,000 people by the end of '26.
At the same time,New order amount for generative AIIsExceeded 900 million dollars in the 3rd quarterI revealed it.Generative AI-related salesIsIt's already 2 billion dollars since the beginning of 2024The profit was 500 million dollars. This level has already exceeded the full year of fiscal 2023 (sales of 300 million dollars, profit of 100 million dollars).
Deviation rate from Accenture's target stock price
(As of 6/21, target stock prices are Bloomberg's tally, same as below)
Average target stock price：$346.72
13% room for growthSuggest
Deviation rate from Accenture's target stock price
(As of 6/21, target stock prices are Bloomberg's tally, same as below)
Average target stock price：$346.72
13% room for growthSuggest
Company Overview
A software giant. The world's largest cloud-based business support software. Develop customer management systems (CRM) and applications. Develop business all over the world. Workflow automation using AI is also provided. The first AI center was opened in London on 6/6.
The world's No. 1 AI CRM
At the financial results briefing on 5/29, the company's CEO said, “We are at the beginning of a huge opportunity to connect with customers in a completely new way using AI.The world's No. 1 AI CRM companyAs,We're in a great position to help companies realise the potential of AI over the next 10 years” he emphasized.
Performance trends(Financial results announced on 5/29)
1Q results were mixed, and full-year guidance fell short of expectations
●1Q (February-April term) results
◆Sales: $9.13 billion, up 11% year over year; market forecast: $9.15 billion
◆Adjusted earnings per share: $2.44; year-over-year period: $1.69; market forecast: $2.38
●Full year guidance
◆Sales: $37.7 billion to $38 billion; market forecast: $38.01 billion
◆Adjusted earnings per share: $9.86 to $9.94, previous forecast $9.68 to $9.76, market forecast: $9.79
A software giant. The world's largest cloud-based business support software. Develop customer management systems (CRM) and applications. Develop business all over the world. Workflow automation using AI is also provided. The first AI center was opened in London on 6/6.
The world's No. 1 AI CRM
At the financial results briefing on 5/29, the company's CEO said, “We are at the beginning of a huge opportunity to connect with customers in a completely new way using AI.The world's No. 1 AI CRM companyAs,We're in a great position to help companies realise the potential of AI over the next 10 years” he emphasized.
Performance trends(Financial results announced on 5/29)
1Q results were mixed, and full-year guidance fell short of expectations
●1Q (February-April term) results
◆Sales: $9.13 billion, up 11% year over year; market forecast: $9.15 billion
◆Adjusted earnings per share: $2.44; year-over-year period: $1.69; market forecast: $2.38
●Full year guidance
◆Sales: $37.7 billion to $38 billion; market forecast: $38.01 billion
◆Adjusted earnings per share: $9.86 to $9.94, previous forecast $9.68 to $9.76, market forecast: $9.79
Furthermore, after financial results were announced, major US securities companies maintained purchase recommendations, saying that the company was an “underestimated winner of generative AI.”
Discrepancy rate from Salesforce's target share price
Average target stock price：$294.50
22% room for growthSuggest
Created 6/21/24 Market Analyst Amelia
Source: Company materials and created by MooMoo Securities from Bloomberg
Average target stock price：$294.50
22% room for growthSuggest
Created 6/21/24 Market Analyst Amelia
Source: Company materials and created by MooMoo Securities from Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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