BCE (BCE.TO) provided an "encouraging", and "credible", update on its AI strategy, that involves Bell AI Fabric, its AI infrastructure business and the largest unit within BCE's AI Powered Initiatives, writes BMO Capital Market's Tim Casey.
Casey, who is maintaining an outperform rating and $37.00 price target on the shares of the company, said BCE's AI Powered Initiatives is the telco's fastest growing unit, representing an estimated 3% of revenues in 2026 but is expected to contribute 8% of revenues in 2028.
"We expect more positive announcements from BCE, notably government sovereign AI projects."
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