NEW YORK - EXL [NASDAQ: EXLS], a company specializing in data analytics and digital operations, announced on Wednesday its collaboration with NVIDIA (NASDAQ:NVDA) to create AI applications for sectors such as insurance, healthcare, and banking. This initiative will utilize the NVIDIA AI platform, which encompasses computing, networking, and software tools.
EXL plans to integrate AI into its services to enhance the efficiency and scalability of enterprise operations. The collaboration aims to refine large language models (LLMs) and develop tools like GenAI-driven insights engines and smart agent assist solutions. These advancements are expected to improve processes like claims adjudication and policy underwriting in insurance, with other applications across various industries.
Anand "Andy" Logani, EXL's Executive Vice President and Chief Digital Officer, emphasized the necessity for companies to leverage data and AI to remain competitive. He stated that the NVIDIA AI platform would serve as a foundation for EXL's data science and engineering teams to build domain-specific solutions.
NVIDIA's Vice President, Alvin DaCosta, highlighted the challenges industries face in adopting generative AI and expressed confidence that the partnership would enable more customers to develop and deploy AI solutions tailored to their needs.
As part of the initiative, a significant portion of EXL's data engineering and science team will receive training on NVIDIA's AI services. This is to ensure the integration of NVIDIA AI into EXL's Gen AI platform and the enhancement of its current data and AI solutions.
EXL, founded in 1999 and headquartered in New York, employs over 55,000 people globally. The company's approach focuses on using data and AI to reinvent business models and drive growth.
The information in this article is based on a press release.
In other recent news, Exlservice Holdings (NASDAQ:EXLS) reported a robust start to 2024 with a 9% year-over-year increase in first-quarter revenues to $436 million. The company's adjusted EPS also saw a similar rise to $0.38 per share.
Analyst firm TD Cowen maintained its Buy rating on Exlservice shares, holding a $37.00 price target. The firm's confidence is rooted in Exlservice's strong business model, which consistently delivers low double-digit organic revenue increases and slight margin improvements.
TD Cowen also anticipates Exlservice to continue exceeding expectations and adjusting future projections upward through 2024. The company's Q1 revenue from the Digital Operations & Solutions segment grew by 12% year-over-year to $246 million. However, the Healthcare segment experienced a slight decline of 1.7% year-over-year.
Exlservice's Insurance segment saw a 15.6% increase year-over-year, and the Emerging segment reported an 11.9% year-over-year growth.
These are some of the recent developments for Exlservice Holdings.
InvestingPro Insights
In light of EXL's recent announcement to partner with NVIDIA for AI applications development, InvestingPro data provides a snapshot of the company's financial health and market performance, which may be of interest to investors considering the potential impact of this collaboration.
EXL's market capitalization stands at approximately $5.75 billion, reflecting the company's substantial presence in the data analytics and digital operations sector. The stock is trading at a P/E ratio of 32.01, suggesting a relatively high valuation by the market, which could be indicative of investor confidence in the company's growth prospects or a reflection of the sector's overall valuation trends. Additionally, the company's revenue has grown by 12.34% over the last twelve months as of Q1 2024, demonstrating a solid trajectory in its financial performance.
InvestingPro Tips highlight that EXL has been actively engaging in share buybacks, a move that can reflect management's belief in the company's value. However, the RSI indicates that the stock is currently in overbought territory, which might suggest a potential pullback in the near term. With the company trading near its 52-week high, investors might be paying close attention to whether the collaboration with NVIDIA could further propel the stock's performance.
For those looking to delve deeper into EXL's financials and market standing, InvestingPro offers additional insights, including a total of 17 InvestingPro Tips for a more comprehensive analysis, available at: https://www.investing.com/pro/EXLS.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.