Intuit Inc. (NASDAQ: NASDAQ:INTU), a financial technology platform known for products like TurboTax and QuickBooks, has expanded its board of directors with the appointment of Forrest Norrod, a seasoned executive from semiconductor firm AMD (NASDAQ:AMD).
Norrod's expertise in artificial intelligence (AI) is expected to bolster Intuit's ongoing strategy to integrate AI across its services, the company said on Thursday.
Norrod, who currently serves as the executive vice president and general manager of the Data Center Solutions Business at AMD, brings over three decades of technology industry experience to Intuit's board. His role at AMD involves overseeing strategy, business management, and engineering for the company's data center products.
Norrod's appointment reflects Intuit's commitment to advancing its AI capabilities, which CEO Sasan Goodarzi emphasized as delivering significant benefits to consumers and small businesses.
"Leveraging AI to solve the world™s most important challenges is something that drives me every day," said Norrod, adding, "I'm thrilled to work alongside Sasan, his leadership team, and the rest of Intuit's board as they scale and deliver AI-driven innovations that power prosperity for consumers and businesses."
The appointment brings the total number of Intuit board members to 13.
Meanwhile, the company's per share estimates for the fiscal year 2024 have been raised to approximately $16.80, reflecting a positive revenue outlook. Analyst firms such as Piper Sandler, BMO Capital, and RBC Capital have maintained their Overweight and Outperform ratings on Intuit based on the company's focus on artificial intelligence (AI) advancements as a key growth driver. However, Erste Group downgraded Intuit from Buy to Hold due to competitive pressures.
InvestingPro Insights
As Intuit Inc. (NASDAQ: INTU) welcomes Forrest Norrod to its board, the company's financial metrics reflect a robust business model with significant growth potential. Intuit's market capitalization stands at a healthy $175.07 billion, underscoring its substantial presence in the financial technology sector. The company's commitment to innovation and AI integration is further echoed in its impressive gross profit margin, which was reported at 79.49% for the last twelve months as of Q3 2024. This figure not only demonstrates Intuit's ability to manage costs effectively but also its strong pricing power within the industry.
Investors considering Intuit's stock will note its high earnings multiple, with a P/E ratio of 56.79, and a PEG ratio of 1.52 for the same period, suggesting expectations of continued growth. The company has also demonstrated a commitment to shareholder returns, having raised its dividend for 13 consecutive years, with a recent dividend yield of 0.58% as of 2024. These dividends are a testament to Intuit's stable cash flows and the board's confidence in the company's financial health.
Intuit's strategic focus on AI, as evidenced by Norrod's appointment, aligns with its solid financial performance. The company's emphasis on AI could further enhance its competitive edge in the software industry, where it is already a prominent player. For those interested in deeper analysis and additional insights, Intuit has 14 more InvestingPro Tips available that can be accessed through InvestingPro. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enriching their investment decisions with a comprehensive suite of tools and data.
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