Nvidia always set a big target and Jensen Huang is at it again. Now, he is targeting a $200 billion opportunity sitting right outside Nvidia's traditional GPU territory, and he got a brand new chip to go after it.
Vera CPU and the Rise of Agentic AI
During Nvidia's latest earnings call, Huang spotlighted Vera which is the CPU company launched in March and the product he believes will power the next wave of AI agents. Unlike traditional cloud CPUs built to juggle many tasks at once, Vera is designed with one goal in mind which is processing AI tokens as fast as possible.
That is a meaningful distinction. While GPUs handle the heavy thinking inside AI models, agents and the AI systems that actually go out and do things, run primarily on CPUs. Huang argues the world is about to be flooded with billions of these agents, each needing its own processing backbone.
Every major cloud provider and hardware manufacturer, according to Huang, is already partnering with Nvidia to deploy Vera.
Record Earnings Set the Stage
Nvidia's numbers gave Huang plenty of credibility to stand behind his claims. The company posted $81.6 billion in quarterly revenue which is another all-time high and guided for $91 billion in the quarter ahead. That track record makes it harder to wave off Huang's optimism as empty talk.
He framed the moment plainly and the world is rebuilding how computers work to support agentic AI and physical robotics, and Nvidia intends to be at the center of that shift.
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The Competition Is not Sitting Still
Not everyone is ready to hand Nvidia the CPU market without a fight. Amazon Web Services recently announced a major agreement with Meta to supply its own AI CPUs at scale, and AWS CEO Andy Jassy has made it known that he sees Amazon as a genuine rival to Nvidia across both GPUs and CPUs.
Still, Huang pointed to something hard to ignore and Nvidia has already sold $20 billion worth of standalone Vera CPUs this year, and the year is far from over.
His vision is straightforward. If there are going to be billions of AI agents operating in the world, each using tools and running tasks the way humans use personal computers today and then the market for agentic CPUs could be enormous. Nvidia is betting Vera is the chip that fills that gap.
Conclusion
Nvidia's Vera CPU marks the company's first major push into a market it has not historically competed in. With $20 billion already in sales, strong partner support, and a record-setting earnings backdrop, Huang's $200 billion projection is at least grounded in early momentum. Whether Nvidia can hold that position as rivals ramp up their own chip ambitions remains to be seen.