Investors should consider investing in Amdocs Ltd (NASDAQ: DOX) for exposure to continued growth in artificial intelligence, says George Notter – a Jefferies analyst.
Amdocs recently partnered with NvidiaThe Israeli company teamed up with Nvidia Corp last year to accelerate adoption of Gen AI in the telecom industry. According to Notter:
The company has a strong runway ahead in their AI opportunity, especially with their new Nvidia deal. Legacy business pressures seem to be temporary. We remain bullish on $DOX.
The news arrives only weeks after the multinational reported in-line revenue for the first quarter. Its per-share earnings, however, came in marginally below Street estimates.
Jefferies’ Notter remains bullish on Amdocs stock even though it has already gained close to 15% over the past four months.
Amdocs stock has upside to $105George Notter recommends buying Amdocs stock also because there’s a massive “opportunity to shift customers to cloud”.
He’s constructive on the software company as it has a “competitive moat” and “very sticky customers” as well.
The Jefferies analyst is confident that $DOX will hit $105 by the end of this year on “additional business as operators push AI and Cloud”. His price objective suggests a near 20% upside from here.
Note that Statista forecasts the artificial intelligence market to grow up to tenfold by the end of this decade. Amdocs Ltd does also pay a dividend yield of 2.14% at writing which makes up for another good reasons to have it in an investment portfolio.
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