HJBC/iStock Editorial via Getty Images Investment Summary My previous investment thought on Accenture plc ( ACN ) was an upgrade to a buy rating because the growth outlook had improved. Booking trends were solid, and GenAI-related demand was becoming a more tangible growth lever. After reviewing the latest developments, I no longer think the setup is as clean. The AI story still looks stronger and...
HJBC/iStock Editorial via Getty Images Investment Summary My previous investment thought on Accenture plc ( ACN ) was an upgrade to a buy rating because the growth outlook had improved. Booking trends were solid, and GenAI-related demand was becoming a more tangible growth lever. After reviewing the latest developments, I no longer think the setup is as clean. The AI story still looks stronger and more credible, but bookings momentum has slowed, pricing is only mixed, and ACN is relying more on M&A today. I am still bullish in the long term but am now more cautious in the near term. The AI Story Still Looks Good There were two important points to my buy rating in January this year. First, bookings had finally improved. Second, AI was starting to be a real growth driver. After looking at the recent developments, I think the second point looks better, but the first one does not (will talk about this in the next section). For the AI story, there are tangible data points to make the story more credible. Management said ACN now has >1,400 advanced AI clients, with ~100 added in the latest quarter. More importantly, they also said more clients are moving from proof of concept to production, and this matters the most for the story, I believe, because production work implies clients are actually changing workflows and spending real money, and that makes ACN harder to displace. The knock-on impact here is that AI isn’t just driving growth on its own. It is also pulling more work as it gets adopted. In other words, when clients look to adopt an AI solution, they end up adopting other solutions that ACN offers too. We know this because management said at least one in every two advanced AI projects leads to a data project. Now, this tells me the opportunity is not just ACN helping in AI implementation. It is the entire "whole product." Clients don’t just need the AI solution itself; they need to have the entire infrastructure (data, cloud, security, etc.) to make it work. And s...
US Treasury Secretary Scott Bessent hailed Anthropic PBC ’s Mythos as a revolutionary step that will keep America ahead of China in AI, endorsing an industry leader that’s clashed with Washington over its role in military endeavors. Bessent, speaking Tuesday at a Wall Street Journal event in Washington, dismissed a question suggesting China was rapidly catching up in AI technology, though he said ...
US Treasury Secretary Scott Bessent hailed Anthropic PBC ’s Mythos as a revolutionary step that will keep America ahead of China in AI, endorsing an industry leader that’s clashed with Washington over its role in military endeavors. Bessent, speaking Tuesday at a Wall Street Journal event in Washington, dismissed a question suggesting China was rapidly catching up in AI technology, though he said American artificial intelligence stood just three to six months ahead. He singled out Mythos — a model Anthropic says is highly adept at finding vulnerabilities in software and computer systems that’s being released to a very limited number of carefully-chosen parties. The Treasury Secretary’s comments emerged just days after he and Federal Reserve Chair Jerome Powell summoned Wall Street banks to an urgent meeting on concerns that Anthropic’s latest model will usher in an era of greater cyber risk. “This Anthropic mythos model was a step function change in abilities, learning capabilities,” he told the audience. “It’s all logarithmic. You go from x to the 10th power to x to the 12th and then it’s very difficult to catch up.“ Read More: US Treasury Seeking Access to Anthropic’s Mythos to Find Flaws Still, Anthropic has run afoul of some agencies in Washington. The Pentagon this year declared the company a threat to the US supply chain, under an authority normally reserved for foreign adversaries. The company won a court order last month blocking a ban on government use of the technology, after Anthropic argued the move could cost it billions of dollars in lost revenue. Founded in 2021 by former OpenAI staffers including Chief Executive Officer Dario Amodei , Anthropic has aimed to be a more responsible AI steward than its competitors. Claude and its underlying technology have gained traction with enterprise customers in sectors like finance and health care, as well as with developers. Anthropic has pledged to spend $50 billion to build custom data centers in the US. On Tues...
(Bloomberg) -- US Treasury Secretary Scott Bessent hailed Anthropic PBC’s Mythos as a revolutionary step that will keep America ahead of China in AI, endorsing an industry leader that’s clashed with Washington over its role in military endeavors.Bessent, speaking Tuesday at a Wall Street Journal event in Washington, dismissed a question suggesting China was rapidly catching up in AI technology, th...
(Bloomberg) -- US Treasury Secretary Scott Bessent hailed Anthropic PBC’s Mythos as a revolutionary step that will keep America ahead of China in AI, endorsing an industry leader that’s clashed with Washington over its role in military endeavors.Bessent, speaking Tuesday at a Wall Street Journal event in Washington, dismissed a question suggesting China was rapidly catching up in AI technology, though he said American artificial intelligence stood just three to six months ahead. He singled out M
(RTTNews) - The China stock market has moved higher in three straight sessions, collecting almost 60 points or 1.5 percent along the way. The Shanghai Composite Index now sits just above the 4,0925-point plateau and it's expected to open higher again on Wednesday.
(RTTNews) - The China stock market has moved higher in three straight sessions, collecting almost 60 points or 1.5 percent along the way. The Shanghai Composite Index now sits just above the 4,0925-point plateau and it's expected to open higher again on Wednesday.
Bloom Energy (BE) stock just surged to a new high after Oracle (ORCL) reportedly committed to one of the largest fuel-cell deployments tied to AI infrastructure yet. The partnership could mark a turning point for Bloom, shifting the company from a speculative AI-adjacent play into a serious power ...
Bloom Energy (BE) stock just surged to a new high after Oracle (ORCL) reportedly committed to one of the largest fuel-cell deployments tied to AI infrastructure yet. The partnership could mark a turning point for Bloom, shifting the company from a speculative AI-adjacent play into a serious power ...