Prediction: This Will Be Nvidia's Biggest Move Yet.

Nvidia (NVDA 1.63%) is known for inventing, staying ahead of the curve, and surprising the market with its latest innovations. This has helped the company dominate the artificial intelligence (AI) chip market, seizing 80% share, and become a general AI powerhouse.

Nvidia isn’t about just AI chips anymore. The company sells an entire suite of products and services, from networking to enterprise software, to serve customers with AI projects.

All of this has helped Nvidia stock to soar in the quadruple digits over the past five years, and just this year, it’s heading for a gain of more than 160%. Nvidia shares may not rise in a straight line forever and have dipped at certain points this year — but the company still has plenty of fuel in the tank to power spectacular share performance over the long haul.

The stock could get a boost from news Nvidia announced just recently. My prediction is that this will be the company’s biggest move yet.

Image source: Getty Images.

The ideal chip for AI tasks

Let’s review Nvidia’s path so far, just to get an idea of how powerful this company has become in the AI world. Nvidia started out primarily serving the video game market with its graphics processing units (GPUs) but progressively expanded the reach of these chips into other areas, including AI. The GPU’s ability to handle multiple tasks simultaneously make it the ideal chip for key AI tasks such as the training and inferencing of models.

Nvidia’s chips are the fastest around. Even though they’re also the most expensive, customers have flocked to the company. Part of the reason may be that customers, eager to win in the AI market, see working with the strongest products right from the start as the best way to reach that goal.

They also may agree with Nvidia’s Chief Executive Officer Jensen Huang on the following point: Nvidia’s chips, due to their high performance, will save customers time and make workflows more efficient, resulting in lower total cost of ownership over time. In the long run, Nvidia’s chips may represent the best bargain.

Here’s an anecdote to illustrate just how eager big companies are to get in on Nvidia. Recently, Oracle co-founder Larry Ellison said that he and Tesla chief Elon Musk “begged” Nvidia’s Huang to sell them more chips. Nvidia has struggled to meet the needs of these companies because demand for its chips has exceeded supply.

Now let’s consider Nvidia’s recent move, one that I predict could be its biggest. The tech giant expanded its partnership with Accenture (ACN -0.70%) — and as part of this, the latter formed the Accenture Nvidia Business Group. This is a team of 30,000 who will help clients jump-start their AI projects and scale the adoption of enterprise AI.

Using the full Nvidia AI stack

As part of this, Accenture AI Refinery — using the complete Nvidia AI stack — will help clients reimagine their processes and even develop areas such as sovereign AI. The refinery will be found on all public and private clouds, making it easily accessible.

This can be particularly big for Nvidia because it expands the reach of this AI powerhouse even further. And this is in the context of soaring demand for AI from Accenture customers.

The consulting and professional services company said in its recently closed fiscal year that generative AI demand drove $3 billion in bookings, and $1 billion of that came in the most recent quarter. It’s also important to keep in mind that Accenture is a huge player, with clients in more than 120 countries — so it has significant reach.

This offers Nvidia yet another opportunity to grow its AI market share and further strengthen its reputation as the “go-to” company for AI products and services. All of this should equal another big wave of revenue growth.

That’s why I think this expanded partnership with Accenture will be Nvidia’s biggest move yet. It also makes this top AI stock a great player to buy now and hold onto for the long term to potentially benefit from gains to come.