As the artificial intelligence (AI) revolution continues to gain momentum, investors are keeping a close eye on companies that are at the forefront of this transformative technology. One such company that has caught the attention of Nvidia, the leading manufacturer of graphics processing units (GPUs) used in AI applications, is Accenture (ACN). In this article, we will explore why Nvidia believes Accenture is an AI stock worth watching in 2025.

Accenture, a global professional services company, has been making significant strides in the AI space. The company recently announced a strategic partnership with Nvidia, involving a 30,000-strong workforce trained on Nvidia's AI technology. This collaboration positions Accenture as one of the most well-equipped companies to provide clients with AI expertise they may lack in-house.

Nvidia's CFO, Colette Kress, highlighted Accenture's AI capabilities during the company's Q3 conference call, stating that Accenture has created a new unit with 30,000 employees trained on Nvidia's AI technology. This makes Accenture one of the most well-equipped companies to provide clients with AI expertise, particularly in industries where in-house resources may be limited, such as banking, industrial, or oil sectors.

Accenture's CEO, Julie Sweet, also expressed enthusiasm about the company's AI capabilities, stating that generative AI can uniquely solve challenges or opportunities in every industry. This sentiment aligns with Nvidia's bullish outlook on the AI market, which is projected to grow at a 29% annual rate through 2030, according to Grand View Research.



However, it is essential to consider Accenture's valuation and growth prospects in the context of other AI-focused stocks and tech consulting firms. Accenture's forward price-to-earnings (P/E) ratio of 28 is similar to that of Meta Platforms and Taiwan Semiconductor, but its expected revenue growth of 3-6% is slower than some of its peers. While Accenture's dividend yield of 1.6% and share buybacks make it an attractive investment, its AI focus is relatively minor, accounting for only 5% of its total bookings.

In comparison, Nvidia, a pure-play AI company, has seen its stock soar due to strong earnings growth driven by AI demand. Nvidia's share price has increased 845% since the beginning of 2023, largely due to its leadership in AI accelerators. This highlights the potential for AI-focused companies to generate significant value for investors.



In conclusion, Nvidia's endorsement of Accenture as an AI stock worth watching in 2025 is based on the company's strategic partnership with Nvidia and its 30,000-strong AI-trained workforce. However, investors should also consider Accenture's valuation, growth prospects, and the broader AI market landscape when evaluating the company's potential as an investment opportunity. As the AI revolution continues to unfold, companies like Accenture and Nvidia are well-positioned to capitalize on the growing demand for AI expertise and technology.