Verizon Partners NVIDIA to Power Real-Time AI: Will VZ Stock Gain?

Verizon Communications Inc. VZ has collaborated with NVIDIA Corporation NVDA to power real-time Generative AI (artificial intelligence) applications over its 5G private network. Leveraging Verizon's private Mobile Edge Compute (MEC) technology and NVIDIA’s AI capabilities, the collaboration aims to drive digital transformation and fuel innovation across business enterprises worldwide.

Digging Deep Into VZ-NVDA Tie-Up

Verizon’s MEC platform has been designed to enable developers to build applications for mobile end users and wireless edge devices with ultra-low latency. The combination of Verizon’s private On Site 5G and private 5G Edge with NVIDIA AI Enterprise software platform will enable enterprises to unlock the power of 5G and mobile edge computing with greater operational efficiency.

The 5G edge compute ecosystem enables enterprises to benefit from a private network and edge compute infrastructure on-premise. It allows customers to manage a range of devices while providing highly secure connectivity for real-time AI applications requiring safety, ultra-low latency and high bandwidth.

The new AI-powered solution, developed by combining Verizon and NVIDIA infrastructure, is designed to be a plug-and-play for seamless connectivity. In addition to super-fast speed, the solution can accommodate future evolutions in AI computing while supporting multi-tenancy for multiple use cases. This modular solution can also be scaled with ease. It can be operated remotely via portable private network solutions or on a customer’s premise with a permanent private network on-site for faster decision-making with local processing and inferencing.

The stack is designed to effectively handle compute-intensive apps, including Generative AI Large Language Models and Vision Language Models, Video streaming, broadcast management, Computer Vision, Augmented/Virtual/Extended Reality, Autonomous Mobile Robot/ Automated Guided Vehicle and IoT. The integrated ecosystem approach is likely to help clients define the right models and architecture to deliver their desired outcomes.

VZ Betting Big on Generative AI Capabilities

Verizon earlier completed a trial across a live metro network to test the efficacy of its fiber infrastructure for handling huge AI workloads. The trial was accomplished using Ciena Corporation’s CIEN WaveLogic 6 Extreme (WL6e) coherent optical solution and passed through nine reconfigurable optical add-drop multiplexers (ROADMs).

Leveraging Ciena’s optical solution, Verizon was able to transfer 1.6 Tb/s of data in a live fiber network over a 118 km Boston metro route on a single-carrier wavelength, validating the performance of WL6e in a flexible, dense ROADM environment. This highlighted the fiber network’s prowess in swiftly transferring huge data on a real-time basis, which is the cornerstone of Generative AI.

Will VZ Stock Benefit From These Endeavors?

By developing state-of-the-art solutions that harness Generative AI for key insights, Verizon empowers customers to anticipate and adapt to change. The company has effectively deployed advanced technologies throughout the network for faster agility and the ability to power the processes and movements of AI-generated activity. This has enabled the company to strengthen its position as one of the leading network service providers for AI workloads. This, in turn, is likely to generate incremental revenues in the future and boost the stock.

Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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