Yahoo Finance Nvidia set to benefit from "wave" of enterprise demand for AI agents - Citi
Investing.com -- Nvidia (NASDAQ:NVDA) is set to benefit from a "wave" of demand for artificial intelligence helpers designed to process and perform specific tasks for businesses, according to analysts at Citi.
In a note to clients on Wednesday raising their price target for Nvidia's shares to $150 from $126, the analysts said they expect so-called AI "agents" will one day make up a little under half of sales at Nvidia's key data center unit.
These experimental systems run on programs like OpenAI's ChatGPT-4 or similar models and can learn from a given dataset, make independent decisions, and -- once prompted -- carry out actions autonomously.
The Citi analysts said that these agents have the potential to "scale enterprise productivity," and, at their full power, can be a massive source of spending by companies.
"While AI agents have yet to reach levels in which they can be fully relied upon, they already surpass humans in knowing what to do in practice in some instances," the analysts wrote.
Already known as the maker of the AI-optimized chips that have fueled a boom in enthusiasm around the applications of the nascent technology, Nvidia stands to rake in more revenue from its "Retrieval-Augmented Generation" -- or RAG -- platform, the analysts said. They argued that the RAG offering, which is a part of Nvidia's AI Enterprise segment, may provide the base on which AI agents are built.
Elsewhere, the analysts increased their consensus view for Nvidia's profit per share in the 2025 and 2026 calendar years, citing optimism around the semiconductor giant's plans for its next generation of "Blackwell" AI graphics processors. The first chip, the GB200, is due to ship later this year.
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