If you want to know where artificial intelligence (AI) could go, you’ll probably want to pay attention to this Nvidia (NASDAQ: NVDA) CEO Jensen Huang. After all, Huang’s company is perhaps the most important player in the AI world right now. Nvidia’s graphics processing units (GPUs) remain 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 singled out one potential big winner other than Nvidia.
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In Nvidia’s third-quarter earnings conference call on November 20, Huang stated: “The next wave of AI is [sic] enterprise AI and industrial AI.” He added: “Enterprise AI is firing on all cylinders.” What exactly are the 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 states: “Enterprise AI goes beyond simple automation. It’s about 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. It concerns the use of AI technologies in industrial applications such as robotics and supply chain management.
As you might expect, since Huang was referring to enterprise AI and industrial AI, Nvidia is marketing 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 models and robotics.
Huang highlighted several customers using Nvidia AI Enterprise to develop AI-powered agents and copilots. He also stated, “Consulting leaders like Accenture (NYSE: ACN) and Deloitte are bringing Nvidia AI to companies around the world.”
The Nvidia CEO then explained Accenture’s initiatives in business 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 help roll out Nvidia AI Enterprise across the world.
Accenture also uses business 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%.
Generative AI accounted for $3 billion in new bookings for Accenture in fiscal 2024, which ended August 31, 2024. Accenture CEO Julie Sweet said in the company’s fiscal Q4 update that management believes generative AI ” most transformative technology of the next decade.”
Accenture is also a leader in enabling companies to implement industrial AI. The consulting giant is launching a simulation blueprint for a virtual facility’s robot fleet that integrates Nvidia’s Omniverse, the Isaac robot development platform and the Metropolis Internet of Things platform to help manufacturers “build autonomous, robot-operated, software-defined factories and facilities.”
At first glance, Accenture’s valuation seems problematic. The stock trades at 28 times forward earnings. The price-to-earnings-growth ratio (PEG), which is based on five-year growth projections, is a relatively high 2.24.
However, Accenture’s capabilities in AI may be greater than these valuation figures imply. Don’t underestimate the help organizations will likely need in implementing enterprise AI and industrial AI. Accenture’s strong partnership with Nvidia could give the company 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 believe he is right about Accenture’s role in helping bring these technologies to organizations around the world. Accenture could be an ideal stock to buy for investors looking to capitalize on what Huang sees as the next wave of AI.
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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Alphabet. The Motley Fool holds positions in 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 Motley Fool has one disclosure policy.
Nvidia CEO Jensen Huang says this is the “next wave of AI” – and he picked out one potential big winner other than Nvidia was originally published by The Motley Fool
