Latest news with #DeutscheTelekom
Business Times
18 hours ago
- Business
- Business Times
Outperformed by AI: Time to replace your analyst?
SIX artificial intelligence (AI) models recently went head-to-head with seasoned equity analysts to produce Swot (strengths, weaknesses, opportunities and threats) analyses, and the results were striking. In many cases, the AI didn't just hold its own; it uncovered risks and strategic gaps the human experts missed. This wasn't theory. My colleagues and I ran a controlled test of leading large language models (LLMs) against analyst consensus on three companies – Deutsche Telekom (Germany), Daiichi Sankyo (Japan), and Kirby Corporation (the US). Each was the most positively rated stock in its region as of February 2025 – the kind of 'sure bet' that analysts overwhelmingly endorse. We deliberately chose market favourites because if AI can identify weaknesses where humans see only strengths, that's a powerful signal. It suggests that AI has the potential not just to support analyst workflows, but to challenge consensus thinking and possibly change the way investment research gets done. The uncomfortable truth about AI performance Here's what should make you sit up: With sophisticated prompting, certain LLMs exceeded human analysts in specificity and depth of analysis. Let that sink in. The machines produced more detailed, comprehensive Swots than professionals who have spent years in the industry. But before you eliminate the need for human analysts, there's a crucial caveat. While AI excels at data synthesis and pattern recognition, it can't read a CEO's body language or detect the subtext in management's 'cautiously optimistic' guidance. As one portfolio manager told us, 'Nothing replaces talking to management to understand how they really think about their business.' The 40 per cent difference that changes everything The most striking finding? Advanced prompting improved AI performance by up to 40 per cent. The difference between asking 'Give me a Swot for Deutsche Telekom' and providing detailed instructions is the difference between a Wikipedia summary and institutional-grade research. This isn't optional anymore — prompt engineering is becoming as essential as Excel was in the 2000s. Investment professionals who master this skill will extract exponentially more value from AI tools. Those who don't will watch competitors produce superior analysis in a fraction of the time. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The model hierarchy: Not all AI is created equal We tested and ranked six state-of-the-art models: 1. Google's Gemini Advanced 2.5 (Deep Research mode) – The clear winner 2. OpenAI's o1 Pro – Close second with exceptional reasoning 3. ChatGPT 4.5 – Solid but notably behind the leaders 4. Grok 3 – Elon Musk's challenger showing promise 5. DeepSeek R1 – China's dark horse, fast but less refined 6. ChatGPT 4o – The baseline for comparison The reasoning-optimised models (those with 'deep research' capabilities) consistently outperformed standard versions such as ChatGPT-4o. They provided more context, better fact-checking, and fewer generic statements. Think of it as hiring a senior analyst versus a junior analyst – both can do the job, but one needs far less handholding. Timing matters too. The best models took 10 to 15 minutes to produce comprehensive Swots, while simpler models delivered in less than a minute. There's a direct correlation between thinking time and output quality – something human analysts have always known. The European AI deficit: A strategic vulnerability Here's an uncomfortable reality for European readers: Of the models tested, five are American and one is Chinese. Europe's absence from the AI leadership board isn't just embarrassing – it's strategically dangerous. When DeepSeek emerged from China with competitive performance at a fraction of Western costs, it triggered what some called a 'Sputnik moment' for AI. The message was clear: AI leadership can shift rapidly, and those without domestic capabilities risk technological dependence. For European fund managers, this means relying on foreign AI for critical analysis. Do these models truly understand European Central Bank communications or German regulatory filings as well as they grasp US Federal Reserve statements? The jury's out, but the risk is real. The practical integration playbook Our research points to a clear four-step approach for how investment professionals should use these tools: 1. Hybrid, not replacement: Use AI for the heavy lifting – initial research, data synthesis, pattern identification. Reserve human judgment for interpretation, strategy, and anything requiring genuine insight into management thinking. The optimal workflow: AI drafts, humans refine. 2. Prompt libraries are your new alpha source: Develop standardised prompts for common tasks. A well-crafted Swot prompt is intellectual property. Share best practices internally, but guard your best prompts like trading strategies. 3. Model selection matters: For deep analysis, pay for reasoning-optimised models. For quick summaries, standard models suffice. Using GPT 4o for complex analysis is like bringing a knife to a gunfight. 4. Continuous evaluation: New models launch almost weekly. Our six-criteria evaluation framework (structure, plausibility, specificity, depth, cross-checking, meta-evaluation) provides a consistent way to assess whether the latest model truly improves on its predecessors. Beyond Swot: The expanding frontier While we focused on Swot analysis, the implications extend across the entire investment process. We list a few of these below, but there are many more: Earnings call summarisation and analysis in minutes, not hours ESG red flag identification across entire portfolios Regulatory filing analysis at scale Competitive intelligence gathering Market sentiment synthesis Each application frees human analysts for higher-value work. The question isn't whether to adopt AI – it's how quickly you can integrate it effectively. The uncomfortable questions Let's address what many are thinking: 'Will AI replace analysts?' Not entirely, but it will replace analysts who don't use AI. The combination of human plus AI will outperform either alone. 'Can I trust AI output?' Trust but verify. AI can hallucinate facts or miss context. Human oversight remains essential, especially for investment decisions. 'Which model should I use?' Start with Gemini Advanced 2.5 or o1 Pro (or the successors) for complex analysis. But given the pace of change, reassess quarterly. 'What if my competitors use AI better?' Then you'll be playing catch-up while they're finding alpha. Staying on the sidelines while competitors build AI advantage means ceding ground in an increasingly competitive landscape. The path forward The genie is out of the bottle. LLMs have demonstrated they can perform analytical work in seconds that once took days. They bring speed, consistency, and vast knowledge bases. Used effectively, they're like having a tireless team of junior analysts who never sleep. But here's the key: Success requires thoughtful integration, not wholesale adoption. Treat AI output as you would a junior analyst's draft – valuable input requiring senior review. Master prompt engineering. Choose models wisely. Maintain human oversight. For European professionals, there's an additional imperative: Push for domestic AI development. Technological dependence in critical financial infrastructure is a strategic vulnerability no region can afford. Master the tools – or be outpaced by them Embrace these tools intelligently, or watch competitors leave you behind. The winners in this new landscape will be those who combine AI's computational power with human insight, intuition, and relationship skills. The future of investment analysis isn't human or AI – it's human and AI. Those who recognise this and act accordingly will thrive. Those who don't will find themselves outperformed not by machines, but by humans who learned to work with them. Your next analyst hire might still need that coffee break. But they'd better know how to prompt an LLM, evaluate its output, and add the human insight that transforms data into alpha. Because in 2025, that's the new standard. The tools are here. The frameworks exist. The winners will be the ones who know how to use them. This content has been adapted from an article that first appeared in Enterprising Investor at The full study can be found here The writer, CFA, is chief investment officer at MHS CapInvest, where he employs advanced AI tools to enhance allocation, stock selection, portfolio construction, and risk management for different market capitalisations, He trains teams at DAX-listed companies on generative AI integration and helps investment professionals leverage tools like ChatGPT and Gemini to enhance their performance.
Globe and Mail
2 days ago
- Business
- Globe and Mail
If I Could Buy Only 1 AI Stock Over the Next Year, Nvidia Would Be It. Here's the Key Reason.
Nvidia (NASDAQ: NVDA) CEO Jensen Huang has been defining how the future of artificial intelligence (AI) will evolve. New terms like "sovereign AI" and "AI factories" are being splashed all over business news sites. But what do they really mean? For investors, one thing they should mean is that Nvidia remains the one stock to buy to take advantage of global AI growth. The company has been the leader in selling the hardware needed to support massive compute power being tapped to develop and train large language models (LLMs). But there is much more to the AI ecosystem that Nvidia is already tapping into that will become its next catalyst for growth. AI factories are going global AI factories are what Jensen Huang calls specialized data center facilities designed to develop, train, and deploy AI models at scale. He has been traveling the globe to promote Nvidia's leading role in scaling up these Blackwell-powered factories. Nvidia will also be following its Blackwell GPU architecture with the next-generation Rubin platform in 2026. These Nvidia component-based systems will support sovereign nation digital advancements around the world. These include the United Arab Emirates' (UAE) massive Stargate data center campus, Germany's sovereign AI factory run by telecom giant Deutsche Telekom, and European data center projects being developed by other nations. At a recent Paris tech summit, Huang summarized how the continent is scaling AI solutions, stating, "We now have a new industry, an AI industry, and it's now part of the new infrastructure, called intelligence infrastructure, that will be used by every country, every society." Nvidia will be a major benefactor of this expanding infrastructure. Its powerful GPU clusters, software infrastructure, and networking solutions will all be prominent in many of these large data centers. That's the reason I think Nvidia's growth will continue, and its stock should respond in turn. It's the one stock I would continue to add to my portfolio over the next year if I were only allowed to choose a single name. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor 's total average return is809% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
19-06-2025
- Business
- Yahoo
NVDA: Oppenheimer Sees Trillion-Dollar AI Opportunity for Nvidia
June 19 - Nvidia (NASDAQ:NVDA) could benefit from rising global interest in sovereign artificial intelligence systems, according to a recent client note from Oppenheimer, following CEO Jensen Huang's high-profile tour across Europe. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The firm said Nvidia is working closely with governments to help them build national AI infrastructure. Oppenheimer estimates the total addressable market for sovereign AI could reach $1.5 trillion, with Europe accounting for about $120 billion of that potential. Last week, Nvidia entered a new partnership with Deutsche Telekom to support Germany's push into sovereign AI. The deal aims to accelerate industrial use cases including robotics, simulation, and digital twins. Huang also announced a collaboration with the European Broadcasting Union during a keynote at the VivaTech conference in Paris. He later visited London for further engagements at London Tech Week, as Nvidia expands its sovereign AI strategy across key European markets. Shares of Nvidia have climbed around one-third since late April, as investors weigh the potential of sovereign AI alongside other growth drivers in its enterprise and data center businesses. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
NVDA: Oppenheimer Sees Trillion-Dollar AI Opportunity for Nvidia
June 19 - Nvidia (NASDAQ:NVDA) could benefit from rising global interest in sovereign artificial intelligence systems, according to a recent client note from Oppenheimer, following CEO Jensen Huang's high-profile tour across Europe. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The firm said Nvidia is working closely with governments to help them build national AI infrastructure. Oppenheimer estimates the total addressable market for sovereign AI could reach $1.5 trillion, with Europe accounting for about $120 billion of that potential. Last week, Nvidia entered a new partnership with Deutsche Telekom to support Germany's push into sovereign AI. The deal aims to accelerate industrial use cases including robotics, simulation, and digital twins. Huang also announced a collaboration with the European Broadcasting Union during a keynote at the VivaTech conference in Paris. He later visited London for further engagements at London Tech Week, as Nvidia expands its sovereign AI strategy across key European markets. Shares of Nvidia have climbed around one-third since late April, as investors weigh the potential of sovereign AI alongside other growth drivers in its enterprise and data center businesses. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
NVDA: Oppenheimer Sees Trillion-Dollar AI Opportunity for Nvidia
June 19 - Nvidia (NASDAQ:NVDA) could benefit from rising global interest in sovereign artificial intelligence systems, according to a recent client note from Oppenheimer, following CEO Jensen Huang's high-profile tour across Europe. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The firm said Nvidia is working closely with governments to help them build national AI infrastructure. Oppenheimer estimates the total addressable market for sovereign AI could reach $1.5 trillion, with Europe accounting for about $120 billion of that potential. Last week, Nvidia entered a new partnership with Deutsche Telekom to support Germany's push into sovereign AI. The deal aims to accelerate industrial use cases including robotics, simulation, and digital twins. Huang also announced a collaboration with the European Broadcasting Union during a keynote at the VivaTech conference in Paris. He later visited London for further engagements at London Tech Week, as Nvidia expands its sovereign AI strategy across key European markets. Shares of Nvidia have climbed around one-third since late April, as investors weigh the potential of sovereign AI alongside other growth drivers in its enterprise and data center businesses. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
