By Emily Barry
Cadence Design, Intuit and Nasdaq don’t get as much discussion as their high-profile AI efforts, but their executives were frequently talking about the technology during their recent earnings calls.
It’s perhaps unsurprising that artificial intelligence was the most talked about S&P 500 stock this earnings season.
That honor went to Nvidia Inc. (NVDA), whose stock surged 192% year-over-year as Wall Street searched for AI beneficiaries. In Nvidia’s latest earnings call, the topic of AI came up 104 times for him, between analyst questions and management comments. Executives stressed that the AI rush would soon lead to serious bottom lines for the company.
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But some of the other companies that have made AI a big buzz are more unexpected. For example, Cadence Design Systems Inc. (CDNS), which ranked third on his AI conference call, mentions this cycle in a screen of S&P 500 components done through AlphaSense/Sentieo.
Cadence’s Apr. 24 call had 66 AI mentions, heard in calls from Alphabet Inc. (GOOGL) (GOOGL), Meta Platforms Inc. (META), or Microsoft Corp. (MSFT). It was more than content. When investors think of the current AI craze, this is the first thing that comes to mind. Cadence works in the field of electronic design automation to assist with chip software and hardware design.
“Generative AI design tools are revolutionizing chip and system development with unprecedented optimization and productivity benefits,” said Chief Executive Officer Anirudh Devgan at the beginning of Cadence’s earnings call. rice field. “Customers are already benefiting from our breakthrough generative AI solutions in the digital verification and systems space.”
Blair Abernathy, an analyst at Rosenblatt Securities, said Cadence’s AI products will drive “productivity gains in critical customer designs” and help the company capture the majority of its customers’ R&D budgets. I pointed out after the report that it is expected.
Cadence shares are up 47% so far this year, well outpacing the S&P 500’s 15% gain during that time, but the stock hasn’t risen as much as Nvidia (up 192%) and Salesforce Inc. (CRM). not seen (up 60%), making him the only two companies to see more AI mentions on conference calls so far this cycle.
Alphabet ranked fourth with 65 mentions, which is not surprising. Wall Street is now more appreciative of the company’s years of AI development and its ability to capitalize on this wave of interest in the technology, but Google’s parent company earlier this year positioned itself after Microsoft. spent to reassure investors. Investment in ChatGPT operator OpenAI has received a boost in the court of public opinion.
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CEO Sundar Pichai jumped straight into the AI debate at the company’s April 25 earnings call, mentioning the technology in the second sentence of his prepared remarks, but this is a phone call. It was one of 65 mentions of AI at the conference.
He later called for “an incredible AI opportunity for consumers, our partners and our business,” and said the technology could benefit the company’s search, cloud, advertising products and more. rice field.
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Hewlett Packard Enterprise (HPE) shares rose 25% last month, but only 10% on a year-to-date basis. In his HPE call on May 30, AI was mentioned 57 times by him.
“HPE wins in AI by offering an end-to-end portfolio designed for the full range of enterprise AI workloads and use cases spanning model development, training and inference at scale. from,” said CEO Antonio Neri. The company’s AI business was “somewhat impacted by customer acceptance of certain large deals,” but it was one that saw “particularly noticeable growth,” he said.
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Behind HPE on the AI topic are Meta (57 mentions), Advanced Micro Devices Inc. (AMD) (56 mentions) and Microsoft (53 mentions), with none at this point. Names were also highly relevant to AI trends. AI was discussed 51 times on the Broadcom Inc. (AVGO) conference call, but some of the mentions were based on whether AI spending is “locking in” to more traditional categories, or simply budget It was from analysts who were wondering if there would be an increase in
READ: AMD Is Becoming Nvidia’s ‘Closest Competitor’ In AI Hardware, Which Could Extend Stock Rally
Arista Networks Inc. (ANET) made the top 10 with 47 AI mentions. “Our cloud customers resonate with our AI and platform switching strategy,” said Jayshree Ural, CEO, at an earnings call. We are working on it,” he said. She expects AI networking to be “meaningful for years to come and for the next decade.”
Just outside the top 10 are even less likely suspects, such as tax prep and small business software giant Intuit (INTU), whose May 23 conference call focused on AI. The topic was mentioned 34 times. This is slightly higher than the number of mentions in the conference call of Adobe Inc. (ADBE), which is widely viewed as an AI effort because generative AI can impact the creative process. .
Read: Adobe’s Earnings Help Justify AI-Driven Spike, But Will Stock Now ‘Have a Breather’?
But Intuit sees plenty of opportunities to further deploy AI through its business, and chief executive officer Sasan Gudartsi said the company has “been able to grow this technology,” thanks to its technology investments in AI over the past four years. “Ready to lead the change,” he said.
The company owns Mailchimp, where AI helps customers “more quickly create email campaigns based on industry, marketing intent and brand voice,” he continued. Additionally, AI can help “provide insights that help you manage cash flow and grow your customer base” within another of his Intuit products, his QuickBooks.
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Another potentially surprising name that has made AI big is Nasdaq, Inc. (NDAQ). AI made his 31st appearance in an exchange operator’s earnings release.
“We are just beginning the process of evaluating specific ideas for using generative AI across our products and business operations, but we are looking at broader AI models such as deep reinforcement learning, predictive control, and computer vision. We believe there are compelling opportunities to leverage across the board, and we ask that you support each of our business units in supporting their strategic efforts to increase the liquidity, transparency and integrity of the financial ecosystem.” said CEO Adena Friedman.
– Emily Barry
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06/17/23 1245ET
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