Proactive Investors - An expanded partnership between Accenture PLC (NYSE:ACN) and Nvidia (NASDAQ:NVDA) Corp (NASDAQ:NVDA, ETR:NVD) will boost the corporate adoption of AI and speaks to the next enterprise phase in the AI revolution, analysts at Wedbush believe.
Under the partnership announced on Wednesday, professional services firm Accenture will be forming a new Nvidia Business Group to help enterprises scale their adoption of AI.
The new venture will be launched with 30,000 professionals receiving training globally to help clients reinvent processes and scale enterprise AI adoption with AI agents for improved productivity and growth, Accenture said.
Accenture’s AI refinery Platform will leverage the full Nvidia AI Stack, including Nvidia AI Foundry, AI Enterprise, and Omniverse, to help companies “jump-start their custom-centric AI journeys.”
A network of Accenture AI Refinery Engineering Hubs serving 57,000 Accenture AI practitioners will open in Europe, Asia and North America, supporting large-scale operations, agentic architecture and foundation model development with Nvidia AI, the company added.
“We are breaking significant new ground with our partnership with Nvidia and enabling our clients to be at the forefront of using generative AI as a catalyst for reinvention,” Accenture CEO Julie Sweet commented.
“Accenture AI Refinery will create opportunities for companies to reimagine their processes and operations, discover new ways of working, and scale AI solutions across the enterprise to help drive continuous change and create value.”
The Wedbush analysts noted that AI initiatives at Accenture have been “impressive” and contributed to $3 billion in bookings over the last fiscal year as CEO Sweet has been a major voice in the future of AI within the enterprise.
They continue to estimate that for every $1 spent on an Nvidia GPUs there is a $8 to $10 multiplier across the tech sector, supporting their “firmly bullish” view on tech stocks over the next year.
“Accenture will be a key player on the AI Revolution and this is a smart strategic partnership in our view that is the tip of the iceberg on the broader AI Revolution and demand adoption into 2025 and beyond,” they wrote.
They added that Nvidia has changed the tech landscape as its GPUs have become “the new oil and gold in the IT landscape,” being the only game in town for now.
While competition from AMD (NASDAQ:AMD) and others is ramping up, they see about $1 trillion in AI capex heading for Nvidia in the next few years.
“The cloud numbers and AI data points we are hearing from our field checks around Redmond, Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOGL) indicate massive enterprise AI demand is hitting its next gear as use cases explode across the enterprise landscape,” they wrote.
“While investors may fret about this massive spending wave and are frustrated that top-line growth/margins from these investments could take time to materialize this ultimately speaks to our view this is a 1995 (almost 1996) start of the Internet Moment and not a 1999 Tech Bubble-like moment.”
Shares of Accenture traded up 0.8% at $354.73 following the announcement, while Nvidia stock was up 1% at about $118.