A new era of AI may be just around the corner.
As the market waits for profits, Artificial intelligence (AI) Powerful Nvidia (NVDA -0.84%)Investors will be pleased to hear that the company’s CEO, Jensen Huang, announced a new partnership with Lenovo that will accelerate sales in a key segment: enterprise.
important part of the pie
Most of Nvidia’s revenue comes from companies like Microsoft, Meta Platforms, and Amazon. Tech giants are using their hardware to build huge server farms that run consumer AI products like Gemini and Meta AI. These companies have poured billions into Nvidia’s coffers and have no plans to stop anytime soon. They’re great customers, but there’s always a risk in relying on a relatively small customer base. One of them could decide to switch to another provider, such as AMD, or develop their own chips in-house, as many companies are reportedly doing. Nvidia would be wise to significantly expand its reach beyond those.
That seems to be the purpose of the Nvidia and Lenovo partnership. The companies will partner to build a new platform called Lenovo Hybrid AI Advantage with Nvidia aimed at enterprise customers of all sizes, large and small. This is essentially a custom AI solution tailored to your individual business. If Huang’s promise comes true, it will help companies significantly improve their efficiency and, most importantly, their profitability.
If this platform takes off, it could potentially benefit Nvidia’s bottom line, given that it is comprised of Nvidia products at every level, from flagship Blackwell chips to networking hardware and custom software. there is.
Agent AI is the future
The key component here is what is known as “Agent AI.” The generative AI we’ve seen so far is great at content creation and analysis, and relies heavily on direct human guidance. Agent AI, on the other hand, can reason in more complex environments and, importantly, actually do something. Consider AI marketing tools that can not only create creative materials that are relevant to your entire marketing plan, but can also be deployed across your company’s media channels. You can continue to monitor your campaigns and make real-time adjustments to make them more effective.
The platform being launched by Nvidia and Lenovo is focused on providing this type of agent AI. The potential for efficiency gains and cost savings is huge, making this a very valuable product and potentially a substantial revenue stream for Nvidia.
Next year looks promising
The success of this product is directly related to whether the agent AI can deliver the value promised. If realized, it could mark a major new chapter in the history of AI.
The good news for Nvidia investors is that there’s no need to get this off the ground in a big way right now. Nvidia continues to see significant growth from sales of its flagship AI chips. Demand is not slowing down. The results have some big tech investors worried about the huge capital expenditures being spent on AI infrastructure, but there are no signs that spending will slow down anytime soon. Nvidia’s latest Blackwell chips haven’t been released yet, but they’ve already been sold out for over a year.
Although AMD still lags behind in its own products, the technology gap is narrowing and competition is intensifying. Nvidia could soon face pricing pressure from competitors’ products, and if it can’t fill orders for an extended period of time, customers could start looking elsewhere. Still, I think a serious threat is still some time away, and NVIDIA is in a great position to defend its position. For now, Nvidia remains on top.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Johnny Rice has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
