It strikes me that these sorts of low margin value plays... maybe not this stock in particular, but others... could really benefit in a big way once management turns to AI to reduce opex.
I guess the challenge is figuring out how gpt will be used first. What are the easy gpt wins for opex. Sales? customer support? I'm not entirely sure. But definitely it seems like there could be much bigger wins for little companies that can drop opex by 20% than for a behemoth like nvda who may or may not sell more chips in 2024.
As a middle managerial person and compliance officer I ask gpt to draft all my routine emails to the extent allowed by the co's confidentiality rules, and that has already saved tons of time for me. The biggest issue now seems to be how gpt can be integrated into office software while eliminating the risk of data leak. This should not be too difficult and should be achieved within the near future.
yeah I think that's an interesting angle, particularly now when the more obvious cases in mid- to large-caps I think have all been covered by the market.
I don't think it's a huge help for Unifi, though automation probably provides some help down the line. The other catch for smaller/struggling/low-growth companies is if they will have the capital and the will to spend capital upfront to capture those benefits. That said, there no doubt are some opportunities where opex can get cut - and that can be a big deal for these kind of plays particularly when margins are low. 300 basis points or whatever the boost is can be huge if free cash flow margins are only 4%-5%.
It strikes me that these sorts of low margin value plays... maybe not this stock in particular, but others... could really benefit in a big way once management turns to AI to reduce opex.
I guess the challenge is figuring out how gpt will be used first. What are the easy gpt wins for opex. Sales? customer support? I'm not entirely sure. But definitely it seems like there could be much bigger wins for little companies that can drop opex by 20% than for a behemoth like nvda who may or may not sell more chips in 2024.
Thoughts?
As a middle managerial person and compliance officer I ask gpt to draft all my routine emails to the extent allowed by the co's confidentiality rules, and that has already saved tons of time for me. The biggest issue now seems to be how gpt can be integrated into office software while eliminating the risk of data leak. This should not be too difficult and should be achieved within the near future.
Wow that's interesting. I was not of the impression that it was that helpful yet - clearly it is.
yeah I think that's an interesting angle, particularly now when the more obvious cases in mid- to large-caps I think have all been covered by the market.
I don't think it's a huge help for Unifi, though automation probably provides some help down the line. The other catch for smaller/struggling/low-growth companies is if they will have the capital and the will to spend capital upfront to capture those benefits. That said, there no doubt are some opportunities where opex can get cut - and that can be a big deal for these kind of plays particularly when margins are low. 300 basis points or whatever the boost is can be huge if free cash flow margins are only 4%-5%.