Trend Micro’s NVIDIA Partnership Could Be a Game Changer For Trend Micro (TSE:4704)

• Earlier this month, Trend Micro announced a new integration with NVIDIA BlueField, bringing advanced security for AI data centers and extending protection to AI application layers through collaboration with NVIDIA NeMo Guardrails.
• This collaboration positions Trend Micro among the first to offer validated, enterprise-class security for AI factories, helping organizations deploy AI faster while managing multi-tenant cloud compliance and risk more effectively.
• We'll now explore how this expanded cybersecurity offering for AI infrastructure could influence Trend Micro's long-term investment outlook.

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Trend Micro Investment Narrative Recap

To believe in Trend Micro as an investment, you need confidence in the company’s ability to innovate and execute on AI-driven cybersecurity solutions for enterprises and regulated industries, while managing near-term earnings performance. The recent NVIDIA BlueField integration addresses cloud security in AI infrastructure and supports Trend Micro’s enterprise focus, but will not immediately offset the most critical risk: lingering revenue impacts from digital payments outsourcing issues and consumer business struggles outside Japan.

Among recent announcements, the joint venture formation of Magna AI with Wistron Digital Technology stands out, as it expands Trend Micro’s reach into end-to-end AI transformation services and cements its ambitions to be a leading enabler of secure AI adoption, directly related to its push for new AI-centric service revenue streams.

By contrast, investors should also be aware that pressures from digital payment vendor issues could still weigh on short-term revenues and earnings...

Read the full narrative on Trend Micro (it's free!)

Trend Micro's outlook anticipates ¥312.2 billion in revenue and ¥50.0 billion in earnings by 2028. This is based on 4.7% annual revenue growth and a ¥19.2 billion increase in earnings from the current ¥30.8 billion.

Uncover how Trend Micro's forecasts yield a ¥9250 fair value, a 17% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates span from ¥7,397 to ¥9,250, with input from just 2 contributors. Meanwhile, the company’s investments in AI security remain a key driver for future service revenue growth, inviting you to review a variety of viewpoints before forming your own outlook.

Explore 2 other fair value estimates on Trend Micro - why the stock might be worth as much as 17% more than the current price!

Build Your Own Trend Micro Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Trend Micro research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Trend Micro research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Trend Micro's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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