Verizon (VZ) and Nvidia (NVDA) have joined forces to provide enterprises with an AI-powered 5G platform. The deal aims to accelerate AI adoption across industries by allowing businesses to easily deploy and integrate AI solutions.
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Under the deal, Verizon’s 5G private network capabilities will be combined with Nvidia’s AI enterprise software and microservices. This partnership aims to deliver real-time AI applications that require rapid response times and robust security measures.
Further, the new platform can handle demanding AI workloads, such as generative AI, video streaming, AR/VR, computer vision, autonomous robotics, and IoT. Also, it can be deployed remotely via portable private network solutions or on-premises with a permanent network. VZ is expected to begin demonstrations of the solution in early 2025.
Verizon Sees Economic Potential in AI and 5G Integration
Verizon highlighted the growing importance of AI for businesses, citing a PwC study showing that 75% of companies are already using or planning to use AI. A McKinsey survey also found that 50% of businesses have adopted AI in at least one area.
Verizon also pointed out that 5G is expected to generate $12 trillion in global economic output by 2035, stressing the need for strong solutions to support the increasing demands of AI.
Is VZ a Buy, Sell, or Hold?
Turning to Wall Street, VZ stock has a Moderate Buy consensus rating based on eight Buys and 10 Holds assigned in the last three months. At $46.47, the average Verizon price target implies a 13.95% upside potential. Shares of the company have gained 13.59% year-to-date.
What Is the Price Target for NVDA?
Turning to Wall Street, NVDA stock has a Strong Buy consensus rating based on 37 Buys and three Holds assigned in the last three months. At $177.14, the average Nvidia price target implies a 35.85% upside potential. Shares of the company have gained 163.4% year-to-date.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
