27/05/2026
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Nvidia CEO Jensen Huang says the company has found a new massive $200 billion total addressable market (TAM).
Huang positioned this massive new market at the feet of Nvidia’s new CPU product, Vera, which was introduced in March.
Speaking on Wednesday’s earnings call — after Nvidia posted another record-breaking quarter with $81.6 billion in revenue and forecast $91 billion for the next — Huang pitched Vera as a potentially transformative product.
But no matter how well Nvidia delivers, Wall Street harbors anxiety over what will knock Nvidia from its perch. Lately, such fears have centered on the CPU. Nvidia is the king of the GPU, whereas historically the CPU markets were owned by companies like Intel and AMD.
But now, with the Vera CPU, which is sold alone and bundled with its Rubin GPU, Huang believes he’s unlocked “a major new growth driver” for his company because Vera is, he believes, “the world’s first CPU, purpose-built for agentic AI,” Huang said on the call.
“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.
He explained that while the “thinking” part of an AI model uses GPUs, agents mostly run on CPUs. They use CPUs to do their assigned tasks and will, he predicts, run their own form of CPU-driven PCs.
“We’re going to need a lot more CPUs,” he explained.
Huang says, Nvidia has already sold $20 billion worth of standalone Vera CPUs this year.