Palm Valley Says Amdocs Is Adapting to AI Revenue Risks

Palm Valley Capital Fund said Amdocs is responding to the risk that AI could pressure billed revenue by taking on more responsibility for customers and automating delivery. The fund named Amdocs among its three biggest contributors to returns in the third quarter.

The fund cited Amdocs’ 10-year strategic engagement with Liberty Latin America, covering management and transformation of the company’s IT ecosystem through Amdocs’ AI operating system. Palm Valley said the deal could help lead to future business using Amdocs’ AI capabilities.

Palm Valley described Amdocs as mature and highly cash-generative. Its base case is for minimal top-line growth at good margins over the medium term.

Amdocs traded at $58.59 on Monday afternoon, up 0.81% since the previous close.