In a week of seismic shifts in the tech industry, Nvidia has claimed the title of world’s most valuable company, surpassing a $3 trillion market cap on the back of soaring artificial intelligence (AI) demand, while Oracle announced a $1 billion investment in Spanish cloud infrastructure to compete with other cloud giants in Europe.
Meanwhile, Accenture’s latest earnings report revealed strong AI bookings but sluggish overall growth, highlighting the uneven impact of AI across the tech sector. These developments come as a Citi report predicts AI could automate or augment two-thirds of banking jobs, underscoring the transformative and potentially disruptive power of AI across multiple industries.
Accenture, a global professional services firm, reported mixed third-quarter fiscal 2024 results. While new bookings surged 22% year over year to $21.1 billion, driven by strong demand for digital transformation and artificial intelligence (AI) services, revenue dipped slightly by 1% to $16.5 billion.
The company highlighted significant progress in its AI business, securing over $900 million in new bookings during the quarter, bringing the total for the fiscal year to $2 billion. Accenture also reported $500 million in AI revenue for the year.
However, overall revenue growth was hampered by a 2% foreign-exchange impact and softness in its consulting business, which saw a 3% decline. This has led the company to revise its full-year revenue growth forecast to 1.5% to 2.5% in local currency, down from the previous 1% to 3% range.
Despite the muted revenue growth, Accenture’s profitability improved. Adjusted earnings per share (EPS) of $3.13 were down 2% from last year but beat analyst expectations. The company also raised its quarterly cash dividend by 15% to $1.29 per share.
Accenture’s performance reflects the broader trend of companies investing heavily in AI to enhance efficiency and drive growth, even as they grapple with macroeconomic headwinds and currency fluctuations. The company’s strong AI momentum and improved profitability offer a silver lining, suggesting it’s well-positioned to capitalize on the long-term growth opportunities in digital transformation.
Oracle announced plans to invest over $1 billion in Spain over the next decade, marking a significant expansion of its cloud computing presence in the country. The tech giant will establish a third cloud region in Madrid, adding to its existing facilities to meet the growing demand for cloud and AI services.
The move comes as Spanish businesses and government agencies shift toward cloud technologies. Oracle’s new public cloud region aims to enable organizations to migrate workloads from on-premises data centers while addressing regulatory requirements, particularly in the financial services sector.
Telefonica España, Spain’s largest telecom provider, will serve as the host partner for the planned cloud region. This arrangement builds on the existing relationship between the two companies and could potentially give Telefonica an edge in the competitive telecom market.
Oracle’s expansion in Spain reflects a broader trend of major tech companies investing in cloud infrastructure across Europe. The company faces stiff competition from established cloud leaders like Amazon Web Services, Microsoft Azure, and Google Cloud, all of which have been expanding their European footprints.
The move raises questions about data sovereignty and security, as European regulators continue to scrutinize the control of data by U.S.-based tech companies. Oracle claims its new region will help customers address data residency requirements, but the specifics of how this will be implemented remain unclear.
As cloud adoption accelerates in Spain, Oracle’s investment could play a role in shaping the country’s digital landscape. However, the long-term implications for competition, regulation and technological development in the region are yet to be fully determined.
Nvidia has dethroned Microsoft and Apple to become the world’s most valuable company, with a jaw-dropping market cap of $3.34 trillion. Fueled by insatiable AI demand, the chip giant’s meteoric rise saw its shares skyrocket over 170% this year alone.
Nvidia’s breakneck pace from $2 trillion to $3 trillion in just 96 days leaves tech titans in the dust, as Microsoft and Apple took 945 and 1,044 days, respectively, for the same feat. As AI fever grips Wall Street, Nvidia’s coronation underscores the transformative power of AI in reshaping the global economic landscape.
In the not-so-distant future, your bank teller might be more silicon than human. A new Citi report reveals a startling statistic: a little more than half — 54% — of jobs in the banking sector stand to be automated, with another 12% ripe for augmentation by AI.
The report’s introduction sets a foreboding tone. “AI-powered clients could increase price competition in the finance sector. The balance of power may shift,” warns Citi.
The adoption rate, it predicts, will be led by digitally native, cloud-based firms, such as FinTechs, with nimble incumbent banks hot on their heels. However, many traditional banks, burdened by outdated technology and resistant culture, may stumble, losing their market foothold.
The vision of a “bot-powered world” isn’t without its caveats. Compliance, security, regulation and ethics loom large on the horizon. “Since AI models are known to hallucinate and create information that does not exist, organizations run the risk of AI chatbots going fully autonomous and negatively affecting the business financially or its reputation,” Citi cautions.
For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More