Nvidia (NVDA) and ServiceNow (NOW) on Wednesday announced a partnership to develop enterprise-grade Generative Artificial Intelligence capabilities to dramatically improve business processes. The news could be a catalyst for NVDA stock and NOW stock.
Using Nvidia software, services and computing hardware, ServiceNow develops custom large language models trained on data specifically for its ServiceNow platform. Artificial intelligence applications will then provide shortcuts for workers, starting with information technology helpdesks.
For example, generative AI can automatically summarize user problems in a service ticket. Nowadays, this process manually takes about seven to eight minutes. This frees up service desk staff to solve more complex problems or help other users.
Finally, the AI learnings are fed into the helpdesk’s self-service capabilities.
ServiceNow announced the partnership with Nvidia at its Knowledge 2023 conference in Las Vegas.
NVDA stock, NOW stock on the up
In today’s trading, NVDA stock is up 3.3% to 301.78, while NOW stock is up 5.3% to 492.92. ServiceNow also announced a share repurchase worth up to $1.5 billion.
In addition to summarizing service tickets, Nvidia AI technology will also automate other workflows for ServiceNow’s IT helpdesk. These include automatic ticket routing, automatic ticket resolution, incident severity prediction, root cause analysis, and similar incident detection.
By partnering with Nvidia, ServiceNow intends to develop new uses for Generative AI across the enterprise, including for IT departments, customer service teams, employees and developers. It is also hoped that the automation of work processes will be strengthened and productivity will be increased rapidly.
Use company-specific information for AI
“IT is the nervous system of every modern company in every industry,” Nvidia CEO Jensen Huang said in a press release. “Our collaboration to build highly specialized enterprise Generative AI will increase the power and productivity of IT professionals worldwide using the ServiceNow platform.”
The ServiceNow platform’s generative AI is based on company-specific information. In contrast, OpenAI generative AI programs like ChatGPT are trained on publicly available information.
The ServiceNow partnership news is the latest in a steady barrage of artificial intelligence announcements from Nvidia that have propelled NVDA stock higher.
NVDA stock has doubled this year
Year-to-date, NVDA stock is up 106.5% through the close on Wednesday. Meanwhile, NOW stock is up 27%. For comparison, the S&P 500 index is up 8.3% so far in 2023.
Investor enthusiasm for artificial intelligence has boosted a number of tech stocks. These include Adobe (ADBE), AMD (AMD), Google’s parent company Alphabet (GOOGL) and Microsoft (MSFT).
Generative AI was a big focus at ServiceNow’s Knowledge conference. The enterprise software company also announced AI advances for finance and supply chain workflows.
Nvidia, ServiceNow on IBD stock lists
ServiceNow and Nvidia are exploring a range of generative AI use cases to simplify and improve productivity across the enterprise. This includes the development of intelligent virtual assistants and agents that help to quickly resolve a wide range of user questions and support requests with purpose-built AI chatbots that use large language models and focus on defined IT tasks.
“As generative AI adoption accelerates, organizations are turning to trusted vendors with battle-tested, secure AI capabilities to increase productivity, gain a competitive advantage, and ensure data and intellectual property (IP) security,” ServiceNow Chief Operating Officer CJ Desai said in a written statement. “Together, Nvidia and ServiceNow will help drive new levels of automation to increase productivity and maximize business impact.”
Nvidia and ServiceNow are both on the IBD Tech Leaders list. In addition, NVDA stock is on the IBD Leaderboard and NOW stock is on the IBD Big Cap 20 stock list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Southeast Asian internet company Sea Limited collapses after missing quarterly targets
Lam Research crosses the buy point despite falling chip gear spending
When will PC sales recover? And which stocks are most expecting a rebound?
View stocks on the top list near a buy point
Find winning stocks with MarketSmith’s pattern recognition and custom screens