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Infosys (INFY) & NVIDIA Duo to Build GenAI Tools for Enterprises
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Infosys Limited (INFY - Free Report) and NVIDIA Corporation (NVDA - Free Report) have expanded their strategic partnership to build generative artificial intelligence (AI) tools for enterprises. The expanded alliance will bring together NVIDIA’s AI Enterprise ecosystem of models, tools, applications and compute infrastructure to Infosys Topaz — an AI-first set of services, solutions and platforms.
The integration will help the Bengaluru, India-based IT consulting and outsourcing company create offerings that customers can adopt and easily integrate generative AI into their businesses. The tools will be built to empower businesses to enhance their productivity through utilizing generative AI applications and solutions.
Additionally, Infosys intends to set up an NVIDIA Centre of Excellence. The hub will be fully dedicated to training and certifying 50,000 of the company’s employees on NVIDIA AI technology.
Per the companies’ joint press release, the collaboration extends to digitalization applications, with a primary focus on developing solutions for enterprise use cases across 3D workflows, design collaboration, digital twin, world simulation and others. Moreover, the two companies are co-developing AI-powered solutions in areas like 5G, cybersecurity and energy transition.
Generative AI is a type of AI technology that can produce various types of content, including text, imagery, audio and synthetic data.
Infosys has been ramping up its AI offerings as the success of OpenAI’s ChatGPT has demonstrated the AI technology’s potential to improve operations in almost every industry. Though AI has been around for years, the meteoric rise of OpenAI’s ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability, suggesting that the AI boom may just get started.
Infosys forayed into the generative AI space with the launch of Topaz services in May 2023. Topaz is an AI-first set of services, solutions and platforms using generative AI technologies. The product suite helps amplify the potential of humans, enterprises and communities to tap the next generation of opportunities.
In the last few months, Infosys has struck several billion-dollar deals for its AI-based solutions and services. Last week, the company secured a new $1.5 billion deal with an undisclosed global company for 15 years, according to an exchange filing. Through this agreement, INFY will provide an array of upgraded digital experiences and operational services based on its platforms and AI solutions.
This marked the company’s second AI deal this month, with the first being a strategic and multi-year collaboration with STARK Group to drive its digital transformation based on Infosys' Topaz. In July 2023, INFY signed a $2 billion deal with an existing client, committing to deliver AI and automation services for a five-year duration.
Despite these AI achievements, Infosys is grappling with significant challenges, including a slowdown in digital transformation within the financial and related sectors. Furthermore, this Zacks Rank #4 (Sell) company has encountered delays in several large-scale deals due to drawn-out regulatory approvals and extended transition periods.
Shares of the company have underperformed the Zacks Computer and Technology sector year to date. Shares of INFY have declined 0.7% year to date (YTD) against the Zacks Computer and Technology sector’s rise of 37.2%.
Growing Competition in the Generative AI Space
The AI landscape is filled with big names like NVIDIA and Microsoft (MSFT - Free Report) , which are partnering with Indian IT companies that have the potential to be the direct competitors of Infosys.
Recently, NVIDIA partnered with Indian giants like Reliance Industries and Tata Consultancy Services (“TCS”) to create generative AI-based applications. TCS also partnered with Microsoft to expand its AI capabilities, launch new AI enterprise solutions and provide AI training for its employees. Meanwhile, Wipro (WIT - Free Report) , a key competitor of INFY, revealed plans to invest $1 billion in AI over the next three years.
In spite of tough competition and economic challenges, Infosys has found its niche in the AI market. The company sees growing potential for AI in the Retail, Communication and Original Equipment Manufacturing sector.
Currently, NVIDIA sports a Zacks Rank #1 (Strong Buy), while Microsoft and Wipro each carry a Zacks Rank #3 (Hold). Shares of NVDA, MSFT and WIT have surged 188%, 33.7% and 11.1%, respectively, YTD. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Infosys (INFY) & NVIDIA Duo to Build GenAI Tools for Enterprises
Infosys Limited (INFY - Free Report) and NVIDIA Corporation (NVDA - Free Report) have expanded their strategic partnership to build generative artificial intelligence (AI) tools for enterprises. The expanded alliance will bring together NVIDIA’s AI Enterprise ecosystem of models, tools, applications and compute infrastructure to Infosys Topaz — an AI-first set of services, solutions and platforms.
The integration will help the Bengaluru, India-based IT consulting and outsourcing company create offerings that customers can adopt and easily integrate generative AI into their businesses. The tools will be built to empower businesses to enhance their productivity through utilizing generative AI applications and solutions.
Additionally, Infosys intends to set up an NVIDIA Centre of Excellence. The hub will be fully dedicated to training and certifying 50,000 of the company’s employees on NVIDIA AI technology.
Per the companies’ joint press release, the collaboration extends to digitalization applications, with a primary focus on developing solutions for enterprise use cases across 3D workflows, design collaboration, digital twin, world simulation and others. Moreover, the two companies are co-developing AI-powered solutions in areas like 5G, cybersecurity and energy transition.
Generative AI is a type of AI technology that can produce various types of content, including text, imagery, audio and synthetic data.
Infosys Limited Price and Consensus
Infosys Limited price-consensus-chart | Infosys Limited Quote
Infosys Banks on AI Opportunities
Infosys has been ramping up its AI offerings as the success of OpenAI’s ChatGPT has demonstrated the AI technology’s potential to improve operations in almost every industry. Though AI has been around for years, the meteoric rise of OpenAI’s ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability, suggesting that the AI boom may just get started.
Infosys forayed into the generative AI space with the launch of Topaz services in May 2023. Topaz is an AI-first set of services, solutions and platforms using generative AI technologies. The product suite helps amplify the potential of humans, enterprises and communities to tap the next generation of opportunities.
In the last few months, Infosys has struck several billion-dollar deals for its AI-based solutions and services. Last week, the company secured a new $1.5 billion deal with an undisclosed global company for 15 years, according to an exchange filing. Through this agreement, INFY will provide an array of upgraded digital experiences and operational services based on its platforms and AI solutions.
This marked the company’s second AI deal this month, with the first being a strategic and multi-year collaboration with STARK Group to drive its digital transformation based on Infosys' Topaz. In July 2023, INFY signed a $2 billion deal with an existing client, committing to deliver AI and automation services for a five-year duration.
Despite these AI achievements, Infosys is grappling with significant challenges, including a slowdown in digital transformation within the financial and related sectors. Furthermore, this Zacks Rank #4 (Sell) company has encountered delays in several large-scale deals due to drawn-out regulatory approvals and extended transition periods.
Shares of the company have underperformed the Zacks Computer and Technology sector year to date. Shares of INFY have declined 0.7% year to date (YTD) against the Zacks Computer and Technology sector’s rise of 37.2%.
Growing Competition in the Generative AI Space
The AI landscape is filled with big names like NVIDIA and Microsoft (MSFT - Free Report) , which are partnering with Indian IT companies that have the potential to be the direct competitors of Infosys.
Recently, NVIDIA partnered with Indian giants like Reliance Industries and Tata Consultancy Services (“TCS”) to create generative AI-based applications. TCS also partnered with Microsoft to expand its AI capabilities, launch new AI enterprise solutions and provide AI training for its employees. Meanwhile, Wipro (WIT - Free Report) , a key competitor of INFY, revealed plans to invest $1 billion in AI over the next three years.
In spite of tough competition and economic challenges, Infosys has found its niche in the AI market. The company sees growing potential for AI in the Retail, Communication and Original Equipment Manufacturing sector.
Currently, NVIDIA sports a Zacks Rank #1 (Strong Buy), while Microsoft and Wipro each carry a Zacks Rank #3 (Hold). Shares of NVDA, MSFT and WIT have surged 188%, 33.7% and 11.1%, respectively, YTD. You can see the complete list of today’s Zacks #1 Rank stocks here.