Nvidia founder and CEO Jensen Huang announced that the company has identified a new market opportunity worth $200 billion linked to its new CPU product, Vera. This statement came during Nvidia’s earnings call, where the company reported record quarterly revenue of $81.6 billion and a forecast of $91 billion for the upcoming quarter.
During the call, Huang described Vera as a potentially transformative product that is designed specifically for agentic AI applications. He stated, “Vera opens a brand new $200 billion TAM for Nvidia, a market we have never addressed before.” Vera can be purchased independently or bundled with the Rubin GPU.
Despite Nvidia’s successes, Wall Street remains cautious. Analysts express concerns regarding potential competition, particularly in the CPU market traditionally dominated by companies like Intel and AMD. Recently, Amazon Web Services announced a significant contract with Meta for its in-house AI CPUs, indicating increased competition in the sector.
Huang emphasized that while GPUs manage the “thinking” processes in AI, CPUs like Vera are critical for executing tasks. He stated that Vera is designed to process tokens efficiently, distinguishing it from conventional CPUs optimized for multitasking.
He claims Nvidia has already sold $20 billion worth of standalone Vera CPUs this year alone. Huang projects that as demand grows, billions of agents will require CPU technology akin to personal computers used by humans. “We’re going to need a lot more CPUs,” he remarked.
