Nvidia founder and CEO Jensen Huang announced significant growth prospects for the company during a recent earnings call, where he reported record revenues of $81.6 billion and projected $91 billion for the next quarter. He attributed much of this optimism to the launch of Nvidia’s new CPU product, Vera, which he claims has opened a $200 billion Total Addressable Market (TAM).
During the earnings call, Huang described Vera as the “world’s first CPU, purpose-built for agentic AI,” signaling a shift for Nvidia as it enters a market traditionally dominated by Intel and AMD. He emphasized that every major hyperscaler and system builder is partnering with Nvidia to deploy Vera, asserting that the world is “rebuilding computing for agentic AI and robotic physical AI.”
Huang stated that while GPUs are responsible for the “thinking” part of AI models, CPUs like Vera will handle assigned tasks, potentially evolving into devices similar to PCs. He claimed that Vera is engineered to process tokens rapidly, distinguishing it from traditional CPUs that prioritize multi-core performance.
Despite Nvidia’s success, Wall Street remains cautious about its stability in the CPU market. Concerns have been heightened by Amazon Web Services securing a significant contract with Meta for AI CPUs. Amazon CEO Andy Jassy has publicly expressed confidence in AWS’s capabilities in AI chip development.
Regarding sales, Huang reported that Nvidia has already sold $20 billion worth of standalone Vera CPUs this year. He believes the demand for such CPUs will soar as billions of AI agents emerge, necessitating tools akin to PCs.
“The world has a billion users, human users. My sense is that the world is going to have billions of agents,” Huang said, indicating a growing market for CPU technology designed for AI applications.
