TMT Online ObServer_US Software_ our 3rd UBS Enterprise AI Survey; CES 2025_ NVIDIA CEO_CFO Q&A highlights; LWSA_ BZ SMB sales +43% YoY in Dec-2024 (+)

Investment Rating - LWSA is rated as "Buy" with a price target of R$7.20, applying a 21x multiple to 2026E net income [28][14] - NVIDIA is also rated as "Buy" with a price target of US$185, based on a ~30x P/E multiple on C2026E EPS of $6.22 [28][7] Core Insights - The latest UBS Evidence Lab survey indicates that overall AI adoption is increasing but at a slow pace, with 100% of respondents in the AI investigation stage and 61% live with AI products/apps in at least one functional area, up from 52% in May 2024 [4][6] - Despite the positive trend, only 11% of organizations are in production at scale with AI initiatives, with most expecting to move into production by 2H25/2026, which may disappoint investors looking for a significant AI lift in 1H25 [4][6] - Nvidia, Microsoft, and OpenAI continue to lead in the AI space, with Nvidia being the preferred AI compute platform for both training and inference [4][6] - The average expected increase in IT budgets for 2025 is 4.4%, down from 5.6% in the previous survey, indicating a stable spending backdrop [4][6] Summary by Sections AI Adoption and Market Dynamics - 100% of surveyed organizations are exploring AI, with 61% actively using AI products/apps, a significant increase from previous surveys [4][6] - The primary challenge for AI adoption is unclear ROI, which is causing delays in scaling production [4][6] Company Performance and Outlook - LWSA reported a 43% YoY increase in sales for online SMBs in December 2024, reinforcing a positive outlook for Q4 [8][9] - Nvidia's CEO highlighted the company's strong position in AI, emphasizing the need for accelerated computing and the potential for new industries to emerge from AI advancements [6][7] Financial Metrics and Valuation - LWSA's valuation is based on a 21x multiple to 2026E net income, reflecting a historical discount to global SaaS peers [14] - Nvidia's price target is based on a ~30x P/E multiple, indicating strong growth expectations despite recent supply chain concerns [7][13]