While the market anxiously awaits the results of artificial intelligence (AI) power plant NVIDIA(NASDAQ: NVDA)Investors will be pleased to know that the company’s CEO, Jensen Huang, has announced a new partnership with lenovo that will accelerate sales in a key area: business.
Most of Nvidia’s revenue comes from companies like microsoft, Metaplatformsand Amazon. Tech giants use their hardware to build gigantic server farms that run their consumer-facing artificial intelligence products, such as Gemini and Meta AI. These companies have poured billions of dollars into Nvidia’s coffers and have no plans to stop anytime soon. While they are great customers, there is always a risk in relying on a relatively small customer base. Any of them could decide to switch to another provider, such as amdor develop their own chips in-house, as many are reported to be doing. Nvidia would be smart to greatly 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 partnering 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 customized AI solution tailored to each individual company. If Huang’s promise is fulfilled, it will help companies greatly improve their efficiency and, most importantly, their profitability.
Since this platform will be comprised of Nvidia products at every level, from its flagship Blackwell chips to its networking hardware and custom software, the platform could be a big boon to Nvidia’s bottom line if it takes off.
A key component here is what is known as “agent AI.” To this point, the generative AI we’ve seen is great at creating content, analyzing content, and relies heavily on direct human guidance. Agent AI, on the other hand, can reason in more complex environments and, more importantly, can actually do things. Consider an AI marketing tool that could not only put together a complete marketing plan and the creative materials involved, but also implement it across all of the company’s media channels. You could continue to monitor the campaign, adjusting it in real time to make it more effective.
The platform that Nvidia and Lenovo are launching will focus on providing this type of agent AI. The possibilities for increasing efficiency and reducing costs are quite profound, making it an extremely valuable product and a real potential cash cow for Nvidia.
The success of the product will be directly related to the ability of the AI agent to deliver the value it promises. If so, this could be a huge new chapter in the history of AI.
The good news for Nvidia investors is that it doesn’t need this to take off in a major way right now. Nvidia continues to see massive growth thanks to the sale of its flagship AI chips. Demand is not slowing down. Although the current round of earnings calls has left some big tech investors nervous about the huge capital expenditures being spent on AI infrastructure, there are no signs that spending will slow down any time soon. Nvidia’s newest Blackwell chip hasn’t even been released, but it’s already been out of stock for over a year.
While AMD is still behind in its offering, the technology gap is narrowing and competition is intensifying. Nvidia may soon face pricing pressure from rival offerings, and if it can’t fulfill orders for extended periods, customers could start looking elsewhere. Still, I think any serious threat is far away and Nvidia is in an excellent position to defend its position. For now, Nvidia remains on 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 spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, 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 has positions and recommends Advanced Micro Devices, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.
CEO Jensen Huang Just Delivered Fantastic News for Nvidia Investors was originally published by The Motley Fool
