How Investors May Respond To Gen Digital (GEN) and Intel’s Local AI Security Integration for Norton 360

• Norton, a brand of Gen Digital, recently announced a partnership with Intel to enhance AI-powered scam detection and deepfake analysis on Intel Core Ultra processors, providing Norton 360 customers with advanced security features directly on their devices. This integration allows deepfake protection to occur locally, increasing user privacy and detection speed without cloud dependence, at a time when AI-driven cyber threats are an urgent concern.
• We'll examine how this collaboration, which accelerates device-level AI security, might influence Gen Digital's investment narrative going forward.

Find companies with promising cash flow potential yet trading below their fair value.

Gen Digital Investment Narrative Recap

To be an investor in Gen Digital, you need to believe the company can drive recurring revenue and margin growth by staying ahead of cyber threats with differentiated, AI-powered solutions. The Intel partnership supports device-level AI security, potentially reinforcing this narrative, but it does not materially address the biggest short-term catalyst, integration of newly acquired businesses, or the biggest current risk, which is increasing price competition as cybersecurity solutions become more commoditized.

Among recent announcements, the launch of AI-powered Deepfake Protection for Norton 360 mobile apps stands out as especially relevant, since it highlights Gen Digital’s commitment to innovating where threats are evolving fastest. This product aligns with the need for ongoing investment in advanced security and underscores the centrality of AI capabilities as a potential differentiator as the company seeks to maintain and grow its user base.

By contrast, investors should pay close attention to how intensifying competition and bundling from tech giants could threaten Gen Digital’s ability to...

Read the full narrative on Gen Digital (it's free!)

Gen Digital's narrative projects $5.3 billion revenue and $1.2 billion earnings by 2028. This requires 7.7% yearly revenue growth and a $603 million earnings increase from $597.0 million today.

Uncover how Gen Digital's forecasts yield a $34.64 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 5 unique fair value estimates for Gen Digital, ranging from US$25 to US$45 per share. While opinions spread widely, the company’s future earnings growth and ability to monetize new solutions are still questioned as price competition heats up, explore these differing views to inform your thinking.

Explore 5 other fair value estimates on Gen Digital - why the stock might be worth as much as 55% more than the current price!

Build Your Own Gen Digital 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 Gen Digital research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Gen Digital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Gen Digital'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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