Nvidia (NASDAQ:NVDA) is known for inventing, staying ahead of the curve and surprising the market with the latest innovations. With this, the company dominated the artificial intelligence (AI) chip market, capturing an 80% share and becoming a comprehensive AI powerhouse.
Nvidia is no longer just about AI chips. The company sells an array of products and services, ranging from networking to enterprise software, to deliver AI projects to customers.
All of this has helped NVIDIA’s stock price soar by four digits over the past five years, and is on track to rise more than 160% this year alone. Nvidia’s stock price won’t rise linearly forever and may have fallen at certain points this year. However, the company still has plenty of fuel to deliver impressive stock performance over the long term.
Nvidia’s recent news could boost its stock price. My prediction is that this will be the company’s biggest move yet.
The perfect chip for AI tasks
To understand how powerful Nvidia has become in the world of AI, let’s take a look back at Nvidia’s journey so far. Nvidia started serving the video game market primarily with graphics processing units (GPUs), but has gradually expanded the scope of these chips to other areas, including AI. The GPU’s ability to process multiple tasks simultaneously makes it an ideal chip for major AI tasks such as model training and inference.
Nvidia’s chips are the fastest. Customers are flocking to the company even though it is also the most expensive. One reason for this may be that customers who aspire to win in the AI market consider using the strongest product from the beginning as the best way to achieve that goal. .
They may also agree with Nvidia CEO Jensen Huang that: With their high performance, Nvidia’s chips save customers time and make their workflows more efficient. The result is a long-term reduction in total cost of ownership. In the long run, Nvidia’s chips may offer the best value.
Here’s an anecdote that shows how big companies are trying to get into Nvidia. Oracle co-founder Larry Ellison recently said he and Tesla CEO Elon Musk “begged” Nvidia’s Huang to sell more chips. Nvidia has struggled to meet the needs of these companies as demand for its chips exceeds supply.
Next, consider Nvidia’s recent moves. I predict this could be the biggest move. Tech giant expands partnership with Accenture (NYSE:ACN) — and as part of that, the latter founded Accenture Nvidia Business Group. This is a team of 30,000 people who help clients quickly launch AI projects and scale enterprise AI adoption.
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Using the complete Nvidia AI stack
As part of this, Accenture AI Refinery, powered by the full Nvidia AI stack, will also help clients rethink processes and develop areas such as sovereign AI. Refinery will reside on all public and private clouds and be easily accessible.
This could be especially big for Nvidia, as it further expands the reach of this AI powerhouse. This comes on the back of a surge in demand for AI from Accenture’s customers.
The consulting and professional services firm announced that demand for generative AI drove $3 billion in bookings in its recently ended fiscal year, with $1 billion of that coming in the most recent quarter. It’s also important to keep in mind that Accenture is a huge company with customers in over 120 countries, so it has a lot of influence.
This provides Nvidia with new opportunities to increase its AI market share and further strengthen its reputation as the “go-to” company for AI products and services. All of this should equate to a huge wave of further revenue growth.
That’s why I think this expanded partnership with Accenture is Nvidia’s biggest move yet. This top AI stock is also a great stock to buy now and hold for the long term for future gains.
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Adria Cimino has held positions at Oracle and Tesla. The Motley Fool has positions in and recommends Accenture Plc, Nvidia, Oracle, and Tesla. 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.
Prediction: This will be Nvidia’s biggest move yet. Originally published by The Motley Fool
