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Should Trend Micro’s NVIDIA Inception-backed Magna AI Push Require Action From Trend Micro (TSE:4704) Investors?

Simply Wall St · 4d ago
  • Trend Micro and Wistron’s joint venture Magna AI recently joined NVIDIA’s Inception program, gaining access to advanced AI technologies and engineering support to build high‑performance, cost‑efficient AI platforms for enterprises and governments.
  • This move strengthens Trend Micro’s push into production‑scale AI security, potentially reinforcing its role as an enabler of AI‑powered cybersecurity solutions across large organizations.
  • We’ll now examine how Magna AI’s access to NVIDIA’s Inception resources could reshape Trend Micro’s AI‑driven security investment narrative.

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Trend Micro Investment Narrative Recap

To own Trend Micro, you need to believe its pivot toward AI driven, enterprise focused security can offset pressure in consumer and legacy license streams. Magna AI joining NVIDIA’s Inception program supports the near term catalyst around production scale AI security, but does not materially reduce the key risk that heavier AI and consumer reinvestment could weigh on margins without clear payoffs.

The recent expansion of Trend Micro’s alliance with Google Cloud, including Vision One on Assured Workloads and AI powered protection like ScamCheck, fits with the same investment case as Magna AI. Together, these tie the company’s AI security push to concrete cloud platforms, which could matter for how quickly new services translate into recurring revenue.

Yet while AI partnerships look promising, investors should also be aware that rising AI and consumer transformation spending could...

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

Trend Micro's narrative projects ¥312.2 billion revenue and ¥50.0 billion earnings by 2028. This requires 4.7% yearly revenue growth and a ¥19.2 billion earnings increase from ¥30.8 billion today.

Uncover how Trend Micro's forecasts yield a ¥7950 fair value, a 22% upside to its current price.

Exploring Other Perspectives

TSE:4704 1-Year Stock Price Chart
TSE:4704 1-Year Stock Price Chart

Three fair value estimates from the Simply Wall St Community span roughly ¥6,720 to ¥7,950, underlining how far apart views on Trend Micro’s upside can be. When you set those opinions against the company’s heavier AI investment plans, it becomes even more important to weigh how much margin risk you are really comfortable with over the next few years.

Explore 3 other fair value estimates on Trend Micro - why the stock might be worth as much as 22% more than the current price!

Build Your Own Trend Micro Narrative

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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.