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Share Selection Based On ‘Something New’

October 24, 2024

ServiceNow has just reported strong figures for Q3 2024. Business is booming, the chart looks great, and the shares are classic 3G. The question is whether something new is happening to keep driving the price higher.

Two Companies Making The Future Happen

In their results, CEO, Bill McDermott, mentioned five tailwinds driving ServiceNow’s strong growth. The company aspires to be the greatest enterprise software business of the 21st century. Below is one of those tailwinds.

ServiceNow has emerged as the AI platform for business transformation. The secular shift to AI is validated and is unfolding in real time. With Now Assist we have 44 customers spending more than $1m in ACV, including six over $5m and two over $10m, and this continues to be our fastest-growing product ever and an accelerant to our cross-enterprise expansion.

In Q3, we announced our biggest gen AI release to date, Xanadu. This included over 350 net new innovations delivered through 5m-plus engineering hours. Xanadu has supercharged Now Assist with analytics generation, custom skills development, Microsoft CoPilot integration and more. Xanadu expanded industry vertical AI-powered automation for telco, tech, public sector, banking, insurance and manufacturing.

We released Now Assist with security, procurement and an integrated development solution for software engineers. Xanadu showcased ServiceNow’s leadership with a agentic AI. And until now, generative AI and the enterprise requires human prompts to initiate action. We’re now deploying autonomous AI agents that work with people, not just for them.

Using ServiceNow single architecture platform and cross enterprise data, ServiceNow AI agents can uniquely advance beyond prompt-based activity to deep contextual comprehension. This is like hiring an additional workforce to support people by doing the jobs they’ve never wanted to do in the first place. We intend to be the control point that governs the deployment of agentic AI across the enterprise. As this AI innovation on ServiceNow contributes to what IDC says will be a nearly $20 trillion global impact by 2030.

That means every $1 spent on AI solutions and services will generate nearly $5 in value to the global economy. This is why IDC also forecast businesses will spend more than $0.5 trillion on AI in 2027 alone. So when you combine a massive once-in-a-generation technological shift with a platform that is engineered to lead the transformation ServiceNow’s momentum is the result.

Bill McDermott, CEO, ServiceNow, Q3 2024, 23 October 2024

These guys are at the heart of the action.

Our partnership with NVIDIA has been a game changer for enterprises embracing AI. We’re taking that to the next level by co-creating a shared vision on agentic AI. Together, NVIDIA and ServiceNow are developing out-of-the-box use cases for AI agents on the Now platform using NVIDIA NIM Agent Blueprints.

Customers simply turn on these capabilities and start reinventing workflows across the enterprise for small single issue resolutions, all the way to entire incident response workflows. You heard, acknowledge that ServiceNow launched RaptorDB, our new ultrafast database built for AI-first enterprises, which processes transactions 12 times faster, analytics 27 times faster. Customers, including Amadeus, are already in the process of implementing RaptorDB, to supercharge processing speeds across their global systems. Our data ambition doesn’t end there.

We are expanding deeper with our new workflow data fabric, which will unify business and technology data, so it flows seamlessly across the enterprise. Companies have always trusted us to bring order to the chaos of 20th century enterprise architectures. Now we can do the same with their data by powering automation and AI with real-time secure access to data from any source. Workflow Data Fabric also includes zero copy partnerships with established leaders like Databricks and Snowflake so customers can turn data into instant AI-powered action, all on the ServiceNow platform.

Bill McDermott, CEO, ServiceNow, Q3 2024, 23 October 2024

ServiceNow is a class act among the world’s technology which explains why the CEO of German tech giant, SAP, left that company to become CEO of ServiceNow five years ago.

There’s a lot of speculation out there about which companies will be the winners in AI. We shouldn’t look past the companies that are already winning.

By virtue of our team, our technology and our strategic choices, no company is more closely aligned to where our customers need to go.

That not only makes us a safe haven for customers, it also fuels our rocket ship to hit new milestones as we grow to $30bn and beyond.

Bill McDermott, CEO, ServiceNow, Q3 2024, 23 October 2024

Reporting in less than a month is an even more astonishing tech behemoth.

The technical analyses and fundamentals converge to the conclusion that Nvidia stock likely has a long runway ahead and is set to surge to new highs. Despite talk of potential Phase II AI stocks taking the spotlight from Nvidia, from technical analysis, I have determined that Nvidia is in a strong uptrend in all time frames. The moving averages show a recent resurgence of bullish momentum. Although there should be some caution as the MACD [moving average convergence divergence] and RSI [relative strength] show divergence in the short and intermediate terms, the indicators are net positive with an abundance of nearer term bullish signals.

As for the fundamentals, as discussed above, the valuation is cheap considering the strong AI tailwinds, robust financial growth, and Blackwell’s early successes. Therefore, after an evaluation of both the technicals and fundamentals, I believe Nvidia’s stock is a buy

Seeking Alpha, 22 October 2024 (Bay Area Ideas)

Below is just one reason why Nvidia as a business is still full of running.

Everything that moves will one day be autonomous. Demand for autonomous machines and AI-enabled robots is at an all-time high, as industries look to improve operational efficiency, combat workforce shortages, optimize repetitive tasks, and manage dangerous tasks or environments.

With major advancements in AI, accelerated computing, physically based simulation, and a vast ecosystem of sensors and actuators, today’s AI robots can easily adapt, learn, and perform complex tasks with precision.

Developers are using NVIDIA Robotics full-stack, accelerated cloud-to-edge systems, acceleration libraries, and optimised AI models to develop, train, simulate, deploy, operate, and optimise their robot systems and software.  

Blog on Nvidia

Nvidia is such a cool company and a magnet for the smartest brains on the planet.

Share Recommendations (24 October 2024)

ServiceNow NOW

Nvidia. NVDA

Strategy – Look For ‘Something New’

ServiceNow is helping companies implement AI, and that is becoming an important new direction for the business. Nvidia is AI. It doesn’t need something new; it is something new.

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