Nvidia targets $200B market with new Vera CPU

Nvidia posted strong financial results for the quarter, reporting $81.6 billion in revenue and providing a forecast of $91 billion for the next quarter. The financial milestone comes as the company seeks to expand beyond its core graphics processing unit (GPU) business. During an earnings call on Wednesday, Nvidia founder and CEO Jensen Huang highlighted the company’s new central processing unit (CPU)—the primary processor that handles general computing tasks—called Vera, which was introduced in March.

Huang is positioning the Vera CPU as a major growth driver for the company. He claims that Vera represents a $200 billion total addressable market (TAM) for Nvidia, a segment the company has not previously addressed. According to Huang, Nvidia has already recorded $20 billion worth of standalone Vera CPU sales this year, with major hyperscalers—large-scale cloud service providers—and system makers partnering with the company to deploy it. Huang believes Vera is the world’s first CPU purpose-built for agentic AI, which refers to AI systems capable of performing tasks autonomously. “Vera opens a brand new $200 billion TAM for Nvidia, a market we have never addressed before, and every major hyperscaler and system maker is partnering with us to deploy it. The world is rebuilding computing for agentic AI and robotic physical AI. Nvidia sits at the center of these transitions,” Huang said.

The Vera CPU is sold both as a standalone product and bundled with Nvidia’s Rubin GPU. This expansion into CPUs brings Nvidia into direct competition with established chipmakers like Intel and AMD, which have historically dominated the CPU market. It also places Nvidia in competition with cloud service providers developing their own silicon. For instance, Amazon Web Services (AWS) recently signed a contract with Meta to supply millions of Amazon’s own AI CPUs. While Nvidia has established dominance in GPUs, the launch of Vera represents a direct challenge to competitors in the broader processor market as tech companies shift toward autonomous AI agents.

Why it matters

Nvidia is attempting to expand its dominance from GPUs into the CPU market with its new Vera product, which CEO Jensen Huang claims is purpose-built for agentic AI and represents a $200 billion total addressable market.