If you want to see where artificial intelligence (AI) is going, Nvidia is probably the place to look. (NASDAQ:NVDA) CEO Jensen Huang. After all, Huang’s company is arguably the most important player in the AI world right now. Nvidia’s graphics processing units (GPUs) continue to be the gold standard for powering large-scale AI models.
So what does Huang think about the future of AI? He recently discussed the “next wave of AI” and named one potential big winner besides Nvidia.
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During Nvidia’s third-quarter earnings conference call on Nov. 20, Huang said, “The next wave of AI is (sic) enterprise AI and industrial AI.” “Enterprise AI is at full throttle,” he added. So what exactly is the next big thing in AI that Huang mentioned?
Enterprise AI is the use of AI technology by organizations to increase productivity, improve customer service, reduce costs, gain competitive advantage, and foster innovation. Alphabet’s Google Cloud division says, “Enterprise AI is more than just automation. It requires human-like intelligence to understand customer behavior, optimize logistics, detect fraud, and more. It involves using AI to solve complex business problems.”
Industrial AI is similar to enterprise AI, but specific to manufacturing. This includes using AI technology in industrial applications such as robotics and supply chain management.
As you might have guessed from Huang’s mention of enterprise AI and industrial AI, Nvidia sells products in both areas. The company’s AI Enterprise is a cloud platform that supports the development and deployment of AI agents and generative AI applications. Nvidia Omniverse helps customers build, train, and deploy industrial AI models and robotics.
Huang highlighted multiple customers using Nvidia AI Enterprise to develop AI-powered agents and co-pilots. He also said, “Consulting leaders like Accenture… (NYSE:ACN) and Deloitte are deploying Nvidia AI to enterprises around the world. ”
Next, the Nvidia CEO discussed Accenture’s work in enterprise AI. He noted that Accenture has launched a new business unit with approximately 30,000 professionals trained in Nvidia’s AI technology. This group will support the deployment of Nvidia AI Enterprise around the world.
Accenture also uses enterprise AI internally. Huang mentioned a consulting firm’s efforts to utilize AI agents for marketing campaigns. He said Accenture is reducing manual steps in these campaigns by 25-35%.
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Generative AI accounted for $3 billion of Accenture’s new orders in fiscal 2024 (ending August 31, 2024). Accenture CEO Julie Sweet said in the company’s fourth-quarter earnings update that management believes generative AI is “the most transformative technology of the next 10 years.” said. ”
Accenture is also a leader in enabling companies to adopt industrial AI. The consulting giant is launching a virtual facility robot fleet that integrates Nvidia’s Omniverse, Isaac robot development platform, and Metropolis IoT platform to help manufacturers “build software-defined factories and facilities with autonomous robot operations.” We are launching a simulation blueprint.
At first glance, Accenture’s valuation may seem problematic. The stock trades at 28 times forward P/E. The stock has a relatively high price-to-earnings ratio (PEG) of 2.24, based on a five-year growth forecast.
However, Accenture’s opportunity in AI may be greater than these metrics indicate. Don’t underestimate the help your organization will need when implementing enterprise and industrial AI. Accenture’s strong partnership with Nvidia could give it a significant competitive advantage in the coming years.
I think Huang is right about the importance of enterprise AI (especially the use of AI agents) and industrial AI. We also believe he is right about Accenture’s role in delivering these technologies to organizations around the world. Accenture could be an ideal buy for investors looking to profit from what Hwang sees as the next wave of AI.
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Alphabet executive Suzanne Frye is a member of The Motley Fool’s board of directors. Keith Speights holds a position at Alphabet. The Motley Fool has positions in and recommends Accenture Plc, Alphabet, and Nvidia. The Motley Fool recommends the following options: A long January 2025 $290 call on Accenture and a short January 2025 $310 call on Accenture. The Motley Fool has a disclosure policy.
Nvidia CEO Jensen Huang says this is the ‘next wave of AI’ — and names one likely winner other than Nvidia Originally published by The Motley Fool
