Software is ubiquitous and has become the focal point of technological innovation. Apart from running devices and applications, its usage has been extended to managing infrastructure. The Zacks Computer Software industry participants are well-positioned to benefit from the accelerated digital transformation drive across the globe. The shift to cloud and the rise of SaaS (Software-as-a-Service) models offers recurring revenue visibility for vendors and scalability for users.The industry growth is also being ...

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and maximize their stock market investments Group 1: Zacks Style Scores - Zacks Style Scores rates stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential to outperform the market in the short term [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles for a comprehensive evaluation [3][4][5][6] Group 2: Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] Group 3: Universal Display Corporation (OLED) - Universal Display Corporation is a leading developer in the Organic Light Emitting Diodes (OLED) market, currently rated 3 (Hold) with a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 0.8% over the past four weeks [11] - For fiscal 2025, the Zacks Consensus Estimate for OLED's earnings per share has risen by $0.32 to $5.05, with an average earnings surprise of 13.3% [12]

Group 1 - Fujitsu has secured a contract to design the next-generation flagship supercomputer, Fugaku Next [1]

In the latest trading session, MicroStrategy (MSTR) closed at $375.18, marking a -1.85% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.91%. Coming into today, shares of the business software company had lost 4.39% in the past month. In that same time, the Computer and Technology sector gained 0%, while the S&P 500 gained 1.44%. Investors will ...

Core Insights - Oracle is leveraging its Oracle Cloud Infrastructure (OCI) to drive AI growth, with OCI consumption revenues increasing by 62% in Q4 fiscal 2025, reflecting a strong demand for high-performance computing, particularly for AI workloads [1][8] - The company reported total cloud revenues of $6.7 billion in Q4 fiscal 2025, indicating a year-over-year growth of 27% [1][8] - Oracle has partnered with AMD to integrate AMD Instinct MI355X GPUs into OCI, achieving over 2X price-performance compared to previous generations, enhancing efficiency for large-scale AI workloads [2][8] - Oracle is aggressively expanding its global data center presence, currently operating in 23 cloud regions with plans for an additional 47, expecting OCI revenues to grow over 70% in fiscal 2026 [3][8] - The company deployed $9.1 billion in capital expenditures in the reported quarter, totaling $21.2 billion for fiscal 2025, with plans to invest $25 billion in fiscal 2026 [3][8] Competitive Landscape - Oracle faces significant competition in the cloud computing space from Amazon Web Services (AWS) and Microsoft Azure, both of which have established strong market positions [4][5][6] - AWS commands approximately one-third of the global cloud infrastructure market, benefiting from a growing enterprise customer base and high-margin services [5] - Microsoft Azure is recognized for its seamless integration with enterprise applications and advanced AI capabilities embedded in widely used software [6] Financial Performance - Oracle's stock has increased by 26.6% year-to-date, outperforming the Zacks Computer - Software industry's growth of 11% [7] - The company trades at an EV/EBITDA multiple of 26.7x, higher than the industry average of 19.24x, indicating strong market expectations for future growth [9] - The Zacks Consensus Estimate for Oracle's fiscal 2026 revenues is $66.73 billion, reflecting a year-over-year growth of 16.25%, with earnings estimated at $6.68 per share, indicating a growth of 10.78% from fiscal 2025 [10]

Core Insights - Cadence Design Systems, Inc. (CDNS) has expanded its partnership with Samsung Foundry through a new multi-year IP agreement aimed at enhancing its memory and interface IP solutions across Samsung's advanced process technologies [1][10] Group 1: Partnership and Collaboration - The collaboration combines Cadence's AI-driven design platforms with Samsung's fabrication technologies to deliver high-performance, low-power solutions for AI data centers, automotive applications like ADAS, and next-generation RF connectivity [2] - The renewed IP agreement reinforces Cadence's commitment to accelerating innovation, allowing mutual customers to develop next-generation products faster and more efficiently [3] Group 2: Advanced IP Offerings - Under the expanded IP agreement, Cadence will provide a robust suite of advanced IP targeting AI, HPC, and automotive markets, including memory and interface IP such as LPDDR6/5x-14.4G, GDDR7-36G, DDR5-9600, and PCIe 6.0/5.0/CXL 3.2 [4] - Tailored IP offerings include LPDDR5X-8533 PHY for automotive and a 32G PCIe 5.0 PHY for SF2P, further enhancing their joint IP portfolio [4] Group 3: Digital and Verification Solutions - Cadence's digital full flow has been certified for Samsung's SF2P node, developed through extensive design-technology co-optimization, including Hyper Cell methodology and Local Layout Effect support [5] - The Pegasus Verification System and broader physical verification flow have been certified for SF2P and other nodes, ensuring signoff-grade accuracy and scalability, thus reducing time-to-market [6] Group 4: RF and 3D-IC Innovations - Cadence and Samsung have demonstrated an advanced co-design flow for Front-End Module (FEM) and Antenna-in-Package (AiP) designs targeting mmWave applications, improving design data management and enabling quicker development cycles [7] - In the 3D-IC space, a comprehensive power integrity flow has been developed, resolving 80–90% of IR-drop issues with minimal performance impact, showcasing the effectiveness of Cadence's AI-driven analysis [8] Group 5: Market Performance - CDNS currently holds a Zacks Rank 3 (Hold), with shares increasing by 18.5% over the past three months, compared to the Zacks Computer-Software industry's growth of 21.3% [9]

Core Insights - Cisco Systems is enhancing its position in network security and intelligent infrastructure with a strong product portfolio, reporting a 15% year-over-year increase in product revenues to $10.37 billion in Q3 fiscal 2025, with Security products leading the growth at 54% [2][10] - The company's product Annual Recurring Revenue (ARR) increased by 8%, indicating a successful transition to software-based offerings and a more predictable revenue model [3][10] - Cisco's AI Canvas innovation is designed to unify AI-powered IT operations, improving operational efficiency and problem-solving across various domains [4] Financial Performance - Cisco's product revenues rose 15% to $10.37 billion, driven by significant growth in Security and Observability segments [10] - The product ARR climbed 8%, reflecting the shift towards software-based offerings and recurring revenue streams [10] - The Zacks Consensus Estimate for Cisco's fiscal 2025 revenues is $56.59 billion, suggesting a 5.18% year-over-year growth, with earnings estimated at $3.79 per share, indicating a 1.61% increase from fiscal 2024 [12] Strategic Developments - Cisco has secured over $1 billion in AI infrastructure orders in fiscal 2025, ahead of schedule, bolstered by its partnership with NVIDIA and the launch of AI Canvas [5][10] - The collaboration with NVIDIA is aimed at strengthening Cisco's presence in the AI infrastructure market [5] Competitive Landscape - Fortinet and Juniper are emerging as significant competitors to Cisco in the AI and cybersecurity domains, with Fortinet focusing on next-gen firewalls and AI-driven SecOps tools, while Juniper excels in AI-powered networking and automation [6][7][8] Valuation Metrics - Cisco's stock is currently trading at a forward 12-month price-to-sales ratio of 4.31, which is higher than the industry's ratio of 4.11, indicating that the stock may be overvalued [11]

Key Takeaways VRT posted Q1 sales of $2.04B, up 24% YoY, fueled by rising AI infrastructure demand. New AI-ready solution for NVIDIA's GB300 NVL72 enables 142kW per rack with liquid-air cooling. Orders grew 13% YoY, driving backlog to $7.9B as Vertiv expands its AI-aligned portfolio.Vertiv’s (VRT) digital infrastructure portfolio has been gaining traction as hyperscalers and enterprises increasingly scale AI deployments to support high-performance data centers. Vertiv provides integrated solutions spannin ...

Core Viewpoint - Innodata (INOD) shares are trading at a premium with a forward 12-month Price/Sales (P/S) ratio of 4.65X, significantly higher than the Zacks Computer Services industry average of 1.79X [1][8]. Financial Performance - Innodata shares have declined 0.8% year to date (YTD), underperforming the industry and the Zacks Computer & Technology sector, which returned 1.4% and 1.1% respectively [6][8]. - The Zacks Consensus Estimate for second-quarter 2025 earnings is 11 cents per share, down 39% over the past 60 days, compared to break-even earnings in the year-ago quarter [12]. - The consensus mark for 2025 earnings is 69 cents per share, reflecting a 6.8% decrease over the past 60 days, indicating a 22.47% year-over-year decline [12]. Investment and Growth Strategy - The company plans to invest $2 billion in AI technology to support its largest customer in the second quarter of 2025 [10]. - Innodata's Generative AI Test & Evaluation Platform, powered by NVIDIA technology, aims to enhance AI trustworthiness and accelerate model development [13]. - The company expects 2025 revenues to increase by 40% year over year to $238.6 million, driven by an expanding clientele [16]. Market Position and Client Acquisition - Innodata is expanding relationships with key customers, including securing approximately $8 million in new engagements from four Big Tech customers [14]. - The company is onboarding major clients in enterprise tech, cloud software, digital commerce, and healthcare technology, which are expected to provide significant growth potential [15]. - Innodata serves the generative AI IT services market, projected to be worth $200 billion by 2029, indicating substantial growth prospects [17].

Core Insights - Oracle delivered strong fourth-quarter fiscal 2025 results, exceeding expectations, but caution is advised due to execution challenges despite cloud momentum [1][11][21] Financial Performance - Total revenues for the quarter ending May 31, 2025, reached $15.9 billion, reflecting an 11% year-over-year growth [2] - Cloud infrastructure services revenue surged 52% to $3 billion, while total cloud revenues increased 27% to $6.7 billion [2][11] - Remaining Performance Obligations hit $138 billion, a 41% increase, indicating strong future revenue visibility [3] - Fiscal 2026 total revenue guidance exceeds $67 billion, with cloud revenues expected to grow over 40% in constant currency [4][5] Strategic Positioning - Oracle's focus on AI and multi-cloud strategies is driving growth, with multi-cloud database revenues increasing 115% from Q3 to Q4 [7] - Partnerships with AMD and NVIDIA enhance Oracle's AI infrastructure capabilities, positioning the company to meet growing AI demand [8][9] Valuation and Market Position - Oracle's premium EV/EBITDA multiple of 21.06x suggests limited room for execution missteps [11][13] - The stock trades at a 3-year EV/EBITDA multiple of 26.7x, significantly above the industry average of 19.24x, indicating high expectations for growth [13] - Competitive pressures from major players like Amazon Web Services, Microsoft Azure, and Google Cloud pose challenges despite Oracle's differentiation in database workloads [16] Year-to-Date Performance - Oracle shares have increased by 29.2% year-to-date, outperforming the Zacks Computer and Technology sector [17] Future Outlook - The upcoming fiscal 2026 is critical for Oracle to convert its backlog into revenue while managing capital investment requirements [22][23]