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Federal Reserve officials are beginning to look at whether the massive amount of money being spent on artificial intelligence is creating risks. Ansys makes the software that engineers use to design and test the very chips and data centers that power this AI boom.
If the central bank decides that this spending is getting out of hand, it could lead to tighter rules or a slowdown in the easy money that has funded the AI buildout. For Ansys, a cooling of the AI sector would be a concern because its growth is currently tied to companies racing to design new, complex hardware as fast as possible.
Source: Reuters
The company has a reliable track record of clearing the profit bars set by analysts, beating expectations in six of the last eight quarters. This suggests management is disciplined about setting targets they can hit.