If you want to know where artificial intelligence (AI) might be headed, you probably want to pay attention to Nvidia (NASDAQ: NVDA) CEO Jensen Huang. After all, Huang’s company is arguably the most important player in the AI world right now. from Nvidia graphics processing units (GPUs) remain the benchmark for powering large-scale AI models.
So what does Huang think about the future of AI? He recently talked about the “next wave of AI” and named a potential big winner other than Nvidia.
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In Nvidia Third Quarter Earnings Conference Call On November 20, Huang said: “The next wave of AI will be (sic) enterprise AI and industrial AI. » He added: “Enterprise AI is in full swing. » What exactly are these next big things for AI that Huang mentioned?
Enterprise AI is the use of AI technologies to help organizations increase productivity, improve customer service, reduce costs, gain competitive advantages, and drive innovation. AlphabetGoogle’s Google Cloud unit says: “Enterprise AI goes beyond simple automation. It involves using AI to solve complex business problems that require human-like intelligence, such as understanding customer behavior, optimizing logistics, or detecting fraud.
Industrial AI is similar to enterprise AI but is specific to manufacturing. This involves using AI technologies in industrial applications such as robotics and supply chain management.
As you might expect since Huang referred to enterprise AI and industrial AI, Nvidia markets products for 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 and robotics models.
Huang highlighted several customers who are using Nvidia AI Enterprise to develop AI-based agents and co-pilots. He also said: “Consulting with leaders like Accenture (NYSE: ACN) and Deloitte are bringing Nvidia AI to businesses around the world. »
The Nvidia CEO then outlined Accenture’s enterprise AI initiatives. He noted that Accenture has launched a new business unit with about 30,000 professionals trained in Nvidia’s AI technology. This group will contribute to the deployment of Nvidia AI Enterprise across the world.
Accenture also uses enterprise AI internally. Huang mentioned the consulting firm’s efforts to use AI agents in marketing campaigns. He said Accenture is reducing manual steps in these campaigns by 25 to 35 percent.
Generative AI accounted for $3 billion in Accenture’s new bookings in fiscal 2024, which ended Aug. 31, 2024. Accenture CEO Julie Sweet said in the fiscal update of the company’s fourth quarter that management believes generative AI “is the most transformative technology of the next decade.” “
Accenture is also a leader in enabling businesses to implement industrial AI. Consulting giant launches virtual plant robot fleet simulation plan that integrates Nvidia’s Omniverse, robot development platform Isaac and Internet of Things platform Metropolis to help manufacturers “build autonomous factories and facilities and defined by software.
At first glance, Accenture’s valuation may seem problematic. The stock trades at 28 times forward earnings. Its price-to-earnings-to-growth (PEG) ratio, which is based on five-year growth projections, is a relatively high 2.24.
However, Accenture’s opportunities in AI may be greater than these valuation metrics suggest. Don’t underestimate the help organizations will likely need to implement enterprise AI 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. I also think he is right about Accenture’s role in bringing these technologies to organizations around the world. Accenture could be an ideal stock to buy for investors looking to profit from what Huang sees as the next wave of AI.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights holds positions at Alphabet. The Motley Fool holds positions and recommends Accenture Plc, Alphabet and Nvidia. The Motley Fool recommends the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Mad Motley has a disclosure policy.
