Business brief
Israeli Corporate Tech Navigates AI Pivot and Chip Demand
Amdocs takes a $106M restructuring hit to fund an AI shift while Nova hits record revenue on AI chip manufacturing demand.
Business
Amdocs is cutting up to 10% of its staff to finance an AI overhaul — sacrificing short-term profits to automate telecom software.
BackgroundAmdocs provides billing, customer care, and operational software to the world's largest telecommunications carriers. CEO Shimie Hortig is restructuring operations to automate core telecom software deployment using generative AI tools.
- GAAP operating income plummeted to $105 million due to severance payouts and workforce reduction expenses, sharply squeezing reported quarterly profitability.
- Despite heavy restructuring costs, non-GAAP diluted EPS reached $1.84, meeting market expectations and signaling underlying operational resilience across core telecom contracts.
- Amdocs reaffirmed its full-year revenue growth forecast of 3.2% to 4.0%, reassuring investors that telecom carriers continue spending on enterprise software modernization.
Business
Nova hit $255M in quarterly sales as chipmakers buy up its wafer inspection gear — riding the AI hardware boom to a $13B valuation.
BackgroundNova manufactures high-precision optical and X-ray metrology tools used by chip foundries to inspect semiconductor wafers during advanced manufacturing. Demand for advanced packaging and gate-all-around transistor testing has surged with AI hardware expansion.
- Non-GAAP net income rose to $86.5 million, delivering diluted earnings per share of $2.51 and beating consensus estimates across major analyst models.
- Gross margin contracted slightly to 56.5% due to increased operational investments and supply chain scaling, reflecting the costs of expanding high-end metrology production.
- Nova stock has climbed 55% over the past year, making it one of the top-performing tech stocks on the Tel Aviv exchange and Nasdaq.
Unlock the full brief
Sign in to read every signal, takeaway, and source. Free account — Apple, Google, or email.
