Amdocs launches AI Factory to boost telco AI services

JERSEY CITY, NJ - Amdocs (NASDAQ:DOX), a $10.1 billion market cap provider of software and services to communications and media companies with a strong financial health rating according to InvestingPro, has unveiled its Amdocs AI Factory. This launch aims to empower service providers to monetize generative AI technologies, such as GPU as a Service and AI model development, catering to the growing demand for AI-driven solutions in various industries.

The Amdocs AI Factory is designed to support service providers in capturing new revenue opportunities within the enterprise and sovereign AI markets. The solution offers optimized GPU as a Service for scalable AI workloads, model gardens for AI model development, and verticalized AI applications tailored to specific industry needs.

With the global market for AI-based infrastructure services expected to grow at an annual rate of 18% over the next five years, Amdocs’ offering positions service providers to leverage their existing infrastructure and IT capabilities to meet enterprise demand in sectors like healthcare, manufacturing, and utilities. The company generated $4.87 billion in revenue over the last twelve months, maintaining profitability with a net income of $496 million. InvestingPro analysis reveals 10+ additional key insights about Amdocs’ financial performance and market position.

The Amdocs AI Factory provides a comprehensive value chain, from infrastructure to monetization, ensuring full data control, regulatory compliance, and infrastructure optimization. The solution is bolstered by strategic partnerships with NVIDIA (NASDAQ:NVDA) and Dell, integrating NVIDIA NeMo and NIM microservices for efficient AI workloads, and Dell PowerEdge servers for telecom and edge cases, along with automation software for scalable network foundations.

Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs, emphasized the transformative potential of generative AI and the strategic position of service providers to lead this revolution. Christopher Penrose, Global VP of Business Development for Telco at NVIDIA, and Dennis Hoffman, Senior Vice President and General Manager, Telecom (BCBA:TECO2m) Systems Business at Dell Technologies (NYSE:DELL), also highlighted the collaborative efforts to facilitate AI adoption and monetization for service providers.

The announcement is based on a press release statement and reflects Amdocs’ forward-looking vision for the role of service providers in the evolving AI landscape. It is important to note that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Currently trading near its 52-week high with relatively low volatility (Beta: 0.73), Amdocs appears undervalued according to InvestingPro’s Fair Value analysis. Investors can access a comprehensive Pro Research Report on Amdocs, part of InvestingPro’s coverage of 1,400+ US stocks, for detailed insights into the company’s valuation and growth prospects.

In other recent news, Amdocs reported its first-quarter 2024 earnings, exceeding Wall Street expectations with an earnings per share (EPS) of $1.66, surpassing the forecast of $1.64. The company reported a revenue of $1.11 billion, aligning with projections and showcasing a 1.7% increase year-over-year on a pro forma constant currency basis. Amdocs has also been recognized as a leader in telecom software and services by multiple independent analyst firms, including Analysys Mason and GlobalData, highlighting its market-leading position in monetization platforms and revenue management. The company received further accolades from Omdia and Appledore Research for its leadership in BSS software and digital enablement systems. In addition, Amdocs was acknowledged in the 2024 Gartner (NYSE:IT) Market Guide for CSP Service and Network Assurance Solutions. Analysts from firms like Omdia and Analysys Mason have consistently ranked Amdocs as a global leader in various telecom categories. These developments come alongside Amdocs’ strategic focus on cloud services and generative AI capabilities, which the company highlighted as areas of growth.

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