As the market eagerly awaits earnings from 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: enterprise.
The lion’s share of Nvidia’s revenue is derived from companies like Microsoft, Meta Platforms, and Amazon. The tech giants use its hardware to build gargantuan 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 risk in relying on a relatively small customer base. Any one of them could decide to switch to another provider, like AMD, or 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 aim of Nvidia’s partnership with Lenovo. The two companies are teaming up to create a new platform called “Lenovo Hybrid AI Advantage with Nvidia,” aimed at enterprise clients of all sizes, large and small. It is essentially a custom AI solution tailored to each individual business. If Huang’s promise holds true, it will help businesses vastly improve their efficiency and, most importantly, their profitability.
Given that this platform will be comprised of Nvidia products at every level — from its flagship Blackwell chips to its networking hardware to its custom software — the platform could be a boon to Nvidia’s bottom line if it takes off.
A key component here is what is known as “agentic AI.” Up to this point, 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, critically, it can actually do things. Think of an AI marketing tool that could not only craft a whole marketing plan and the creative materials involved, but also deploy it across the company’s media channels. It could continue to monitor the campaign, adjusting it in real time to be more effective.
The platform Nvidia and Lenovo are launching will focus on providing this sort of agentic AI. The possibilities for increased efficiency and cost-cutting are pretty profound, making it an extremely valuable product and a real potential moneymaker for Nvidia.
