While the market eagerly awaits the profits of artificial intelligence (AI) powerhouse Nvidia(NASDAQ: NVDA)Investors will be happy to hear that the company’s CEO, Jensen Huang, has announced a new partnership with Lenovo that will accelerate sales in a key area: entrepreneurship.
The lion’s share of Nvidia’s revenue comes from companies like Microsoft, MetaplatformsAnd Amazon. The tech giants use their hardware to build massive server farms that run their consumer-facing AI products like Gemini and Meta AI. These companies have poured billions of dollars into Nvidia’s coffers and have no plans to stop in the near future. While they are great customers to have, there is always a risk associated with relying on a relatively small customer base. Each of them could decide to switch to another provider, for example AMDor develop their own chips in-house, as many are reportedly doing. Nvidia would be smart to vastly expand its reach beyond them.
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That seems to be the goal of Nvidia’s partnership with Lenovo. The two companies are working together to create a new platform called “Lenovo Hybrid AI Advantage with Nvidia,” aimed at enterprise customers of all sizes, large and small. It is essentially a bespoke AI solution tailored to each individual business. If Huang’s promise comes to fruition, it will help companies vastly improve their efficiency and, most importantly, their profitability.
Considering that this platform will consist of Nvidia products at every level – from the flagship Blackwell chips to the networking hardware and custom software – the platform could be a boon to Nvidia’s bottom line if it’s a success is becoming.
An important part of this is what is known as ‘agentic AI’. So far, the generative AI we’ve seen is great at creating content, analyzing content, and relies heavily on direct human guidance. Agentic AI, on the other hand, can reason in more complex environments, and – crucially – actually do so Doing things. Consider an AI marketing tool that can not only draw up an entire marketing plan and associated creative material, but also deploy it across the company’s media channels. It could continue to monitor the campaign and adjust it in real time to be more effective.
The platform that Nvidia and Lenovo are launching will focus on delivering this kind of agentic AI. The possibilities for increased efficiency and cost savings are quite profound, making it an extremely valuable product and a real potential moneymaker for Nvidia.
The success of the product will be directly related to agent AI being able to deliver the value it promises. If so, this could be a huge new chapter in the AI story.
The good news for Nvidia investors is that there’s no need for this to take off right now. Nvidia continues to see tremendous growth from sales of its flagship AI chips. Demand is not decreasing. While the current round of earnings has made some major tech investors nervous about the massive capital expenditures being spent on AI infrastructure, there is no indication that spending will shrink anytime soon. Nvidia’s latest Blackwell chip hasn’t even been released yet and yet it’s been sold out for over a year.
Although AMD still lags behind in its offerings, the technology gap is closing and competition is increasing. Nvidia may soon face pricing pressure from rival offerings, and if it can’t fill orders for extended periods, customers may look elsewhere. Still, I think a serious threat is still far away and that Nvidia is in an excellent position to defend its position. For now, Nvidia is still at the top.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Advanced Micro Devices, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
CEO Jensen Huang just delivered some fantastic news for Nvidia investors, originally published by The Motley Fool
