Jensen Huang, CEO of NVIDIA Corporation (NASDAQ:NVDA), has unveiled a new $200 billion market for the company, courtesy of its latest product, the Vera CPU.
Huang disclosed this new market potential during Wednesday’s first-quarter earnings call. The Vera CPU, introduced in March, is sold individually or bundled with the Rubin GPU. Huang is optimistic that Vera, being “the world’s first CPU, purpose-built for agentic AI,” has unlocked a substantial growth opportunity for NVIDIA.
“Vera opens a brand new $200 billion TAM for Nvidia,” Huang said.
The CEO expressed that Vera has tapped into a “never addressed before” market. The company is collaborating with every major hyperscaler and system maker to deploy it. He stressed that NVIDIA is at the core of the shift towards agentic AI and robotic physical AI.
Huang explained that the company's Vera CPU platform will be deployed in multiple configurations, including alongside Rubin GPUs, as a standalone CPU, and integrated with ConnectX-9 networking for storage and security workloads. He added that millions of Rubin systems paired with Vera CPUs are expected to ship, with additional use cases focused on confidential computing, compute isolation, and infrastructure software.
While AI models use GPUs for “thinking,” agents primarily run on CPUs to perform their assigned tasks. Huang anticipates that these agents will operate their own form of CPU-driven PCs. He said NVIDIA has already sold $20 billion worth of standalone Vera CPUs this year, calling it the beginning of a new era.
With billions of agents predicted to use tools similar to PCs, Huang believes the world will “need a lot more CPUs,” presenting a massive opportunity for NVIDIA.
AI Inference Fuels CPU Demand
This news comes on the heels of NVIDIA’s announcement that its first Vera CPU systems were delivered to leading AI companies, including SpaceX, Anthropic, and OpenAI. This move is part of NVIDIA’s broader push into next-generation infrastructure designed for “agentic AI” workloads.
Meanwhile, Intel Corp (NASDAQ:INTC) CEO Lip-Bu Tan has also noted an increasing CPU demand due to AI inference, with customers needing more processors to manage orchestration, agents, and reinforcement learning. This aligns with Huang’s prediction of a growing need for CPUs.
Furthermore, the expansion of AI infrastructure has revived demand for data center CPUs as workloads increasingly shift from AI training to inference. Analysts predict that the total addressable market for data center CPUs could expand to about $80 billion by 2028, a nearly threefold increase from 2021 levels.
According to Benzinga Edge Stock Rankings, Nvidia has a growth score of 98.25% and a momentum rating of 85.05%. Benzinga’s screener allows you to compare NVDA’s performance with its peers.
NVDA Price Action: On a year-to-date basis, Nvidia stock climbed 18.33%, as per Benzinga Pro. On Wednesday, it closed 1.30% higher at $223.47.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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