The Marriage of Innovation: SAP SE and NVIDIA have entered into an extended partnership to revolutionize the integration of artificial intelligence (AI) in enterprise solutions. This collaboration aims to provide a powerful AI toolset to business users, enhancing their data analytics capabilities and fostering creativity across SAP’s cloud platform.
Empowering AI Deployment
The main focus of this partnership is the development of SAP Business AI, featuring scalable, industry-specific generative AI functionalities within SAP’s cloud infrastructure. This augmented AI environment is embedded with large language models (LLMs) and ensures the ethical use of AI in business operations. The joint efforts between SAP and NVIDIA aim to launch SAP Business AI, inclusive of NVIDIA’s generative AI foundry service by the close of 2024.
Strategic Integration Overview
One of the principal goals of this collaboration is to seamlessly integrate generative AI into SAP’s cloud solutions, including key offerings like SAP Datasphere, SAP Business Technology Platform (SAP BTP), and RISE with SAP. Efforts will also be made to enhance the SAP BTP with NVIDIA’s generative AI foundry service, paving the way for the effective development and deployment of generative AI models within SAP’s ecosystem.
Innovative Use Cases
To facilitate digital transformation, SAP and NVIDIA are exploring over 20 potential use cases for generative AI. These include leveraging generative AI functionalities in SAP SuccessFactors to enhance human resources processes and automating enterprise resource planning through intelligent invoice matching in SAP S/4HANA Cloud. The partnership also aims to expedite generative AI insights from SAP Signavio and consolidate AI data sources via SAP Datasphere for improved access to high-quality data models using AI and machine learning.
Looking to the Future
Both SAP and NVIDIA envision a future where generative AI is ingrained in the fabric of enterprise applications. As a result, the partnership is geared towards enabling enterprises to deploy generative AI at scale effectively. This strategic alliance aims to synergize the data prowess of SAP with the AI capabilities of NVIDIA, driving innovation and operational efficiency across diverse business verticals.
SAP’s optimistic outlook on the potential of generative AI indicates a promising revenue stream on the horizon. The company’s strategic alignment towards Business AI signifies a crucial growth area for SAP in the coming years.
Currently holding a Zacks Rank #3 (Hold), SAP has seen a stock appreciation of 55.8% over the past year, outperforming the sub-industry’s growth of 51.1% during the same period.
Image Source: Zacks Investment Research
Promising Stocks in Tech Sector
For investors looking at the tech sector, promising stocks like Woodward (WWD) and Perion Network (PERI) present noteworthy opportunities. Both Woodward and Perion Network carry a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Woodward’s fiscal 2024 earnings per share (EPS) has shown a 5.7% increase in the past 60 days, reflecting strong growth potential.
Woodward has consistently outperformed the Zacks Consensus Estimate over the past four quarters, with an average positive surprise of 27.2%. Similarly, Perion Network has shown resilience in its earnings performance, surpassing the Zacks Consensus Estimate in the trailing four quarters with an average surprise of 12.9%.
While Woodward has recorded a 55% stock appreciation over the past year, Perion Network is engaged in a strategic growth trajectory aiming for a long-term earnings growth rate of 22%, despite a 34.2% loss in stock value over the same period.
Diving into the Oil Market?
As global oil demand skyrockets, oil producers face challenges in meeting market needs. Zacks Investment Research’s latest report Oil Market on Fire highlights four unconventional oil and gas stocks poised for substantial gains in the foreseeable future. Don’t miss out on these handpicked recommendations to capitalize on the oil market boom.
Ready to explore top stock recommendations from Zacks Investment Research? Gain access to the 7 Best Stocks for the Next 30 Days now.
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
Perion Network Ltd (PERI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
These views are articulated by the author and might not necessarily mirror the views of Nasdaq, Inc.
