Nvidia (NYSE:NVDA) stock was higher by almost 3% on Thursday after chip giant Nvidia announced a deal with Accenture (NYSE:ACN).
NVDA – Daily Chart
The price of NVDA has been testing a downtrend resistance line in recent months. That level is the obstacle to further gains at the moment.
Accenture has benefited from generative AI with bookings worth $3bn, while Nvidia’s revenue soared to a record high. The two companies are now expanding their existing partnership to accelerate the adoption of gen AI by businesses. Accenture has now launched an Nvidia business group to train 30,000 of its employees to guide clients in adopting AI tools. Accenture also set up a refinery in July which will enable companies to create custom models based on their organisational data.
“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,” said Julie Sweet, CEO of Accenture.
“A new computing era has begun,” Nvidia founder and CEO Jensen Huang said in August. “Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI”.
For now, Nvidia stock needs to get above stubborn resistance and it may depend on geopolitics. An escalation in tensions is likely between Iran and Israel, with the US likely to assist. Chip companies rely on China for much of their income and need allies onside with the United States. That could get harder if a larger conflict draws in global powers.
Nvidia’s pause since June has also hurt asset managers as the broader single stock-picking industry is up 20% on the year, but the S&P 500 is up 22.1%. UBS estimates that Nvidia accounts for 1.43% of that 2.1% underperformance.
