Agentic AI: The Next Frontier in Enterprise Technology Awaits
The artificial intelligence (AI) field is set for a major transformation by 2025, as agentic AI becomes a key player in enterprise technology. This next-gen AI branches out from traditional systems, incorporating advanced reasoning, autonomous decision-making, and robust problem-solving skills.
Transitioning from standard generative AI to agentic AI signifies a crucial change in how technology interacts with human needs. Agentic AI excels at understanding contexts, planning strategically, and handling complex tasks with limited human involvement. Analysts predict that by 2025, more than 60% of enterprise AI implementations will feature agentic capabilities, propelling a market growth expected to hit $45 billion.
The ability of agentic AI to coordinate various AI agents for collaborative solutions has led to impressive efficiency and accuracy improvements. Certain implementations have reported performance boosts of up to 84% compared to traditional methods. This breakthrough is especially impactful in industries like healthcare, finance, and manufacturing, where intricate decision-making calls for sophisticated AI solutions capable of functioning autonomously with human supervision.
This innovation has caught the eye of investors and corporate leaders, unlocking significant opportunities in the AI sector. Companies such as NVIDIA NVDA, ServiceNow NOW, International Business Machines IBM, Microsoft MSFT, and Alphabet GOOGL exemplify various elements of the agentic AI value chain—from infrastructure and development tools to applications and enterprise solutions. Their combined expertise in researching, developing, and commercializing agentic AI positions them to thrive in this emerging trend. Investors looking to tap into this evolving technology should consider these firms in 2025, each presenting unique advantages and significant growth potential in the agentic AI landscape.
Year-to-Date Performance Overview
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NVIDIA: Driving AI Infrastructure Forward
NVIDIA plays an essential role in advancing agentic AI through its specialized hardware and software solutions. This Zacks Rank #2 (Buy) company is known for its RTX GPUs and AI accelerators, which provide the computation needed for training and deploying complex AI agents. Their focus on developing tools tailored for agentic AI, including enhanced simulation environments and neural network architectures, sets them up to gain significantly from the industry’s growth. The AnythingLLM platform is an example of their capability to elevate AI beyond simple tasks to enhance productivity and creativity. Additionally, NVIDIA continues to set industry benchmarks with its hardware advancements.
The Zacks Consensus Estimate for NVDA’s fiscal 2025 earnings rose by a penny to $2.94 per share in the past month.
ServiceNow: Revolutionizing Enterprise Automation
ServiceNow is an exciting player in the enterprise software arena, integrating agentic AI into its workflow automation platform. This Zacks Rank #2 company’s AI Agents for domains such as IT, customer service, procurement, and HR underline its goal of creating AI that collaborates with human oversight. Its early successes in implementing agentic AI in IT service management and customer service automation indicate promising growth as this technology evolves. The company is well-positioned for market share expansion in 2025.
The Zacks Consensus Estimate for ServiceNow’s 2024 earnings has remained stable at $13.87 per share over the past month.
IBM: Crafting Robust AI Solutions for Enterprises
IBM’s focus on agentic AI for enterprise solutions gives it a unique market edge. The company excels in crafting AI solutions for complex business processes, particularly in regulated industries. This Zacks Rank #2 company’s watsonx platform and its commitment to integrating agentic AI capabilities demonstrate its dedication to practical applications. With a focus on responsible AI and enterprise-grade solutions, IBM appeals to long-term institutional investors seeking sustainable growth in the AI sector.
The Zacks Consensus Estimate for IBM’s 2024 earnings has stayed steady at $10.16 per share over the past month.
Microsoft: Spearheading the AI Evolution
Microsoft leads in agentic AI development through strategic investments and partnerships. This Zacks Rank #3 (Hold) company’s Semantic Kernel and AutoGen frameworks offer solid tools for building enterprise-ready AI applications. Integration of advanced AI agents into Azure positions Microsoft to meet soaring demand for enterprise-level solutions. Their drive to develop AI that can perform complex tasks across productivity tools shows early success in enhancing workflow automation and support capabilities. Expect a unified development framework launch in early 2025, placing Microsoft to capture a substantial share of the agentic AI market.
The Zacks Consensus Estimate for Microsoft’s fiscal 2025 earnings remains constant at $12.93 per share over the past month.
Alphabet: At the Forefront of Next-Gen AI
Google’s introduction of Gemini 2.0, under Alphabet, is a pivotal development in agentic AI. This Zacks Rank #3 company aims to create AI systems capable of learning and adapting in real time, achieving significant milestones in protein folding and climate modeling. Gemini 2.0’s native tool use and advanced reasoning capabilities pave the way for groundbreaking agentic experiences. Alphabet’s strong position in both consumer and enterprise arenas, along with its wealth of data and research expertise, makes it an attractive choice for investors keen on the agentic AI wave.
The Zacks Consensus Estimate for Alphabet’s 2024 earnings has held steady at $8.02 per share over the past month.
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