Jensen Huang Says Nvidia's New Vera CPU Opens a Brand-New $200 Billion Market for Agentic AI

NVIDIA founder and CEO Jensen Huang may be one of the greatest corporate hype men of all time, perhaps even surpassing Salesforce's Marc Benioff in his relentless optimism about his company's future and revenues. Yet, quarter after quarter, he delivers on that hype.

So when Huang proclAIms he has found a "brand new 0 billion TAM for Nvidia," there is reason to trust him rather than meet the claim with skepticism.

Huang placed 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 $81.6billioninrevenueandforecast$91 billion for the next — Huang pitched Vera as a potentially transformative product, one that already has promising sales figures.

But no matter how well Nvidia delivers, Wall Street harbors anxiety over what could eventually knock the company from its perch. Lately, such fears have centered on the CPU. Nvidia is the undisputed king of the GPU, whereas historically the CPU market has been owned by companies like Intel and AMD. Nvidia has made CPUs before, but that is not its core business.

For example, last month Amazon Web Services touted a giant contrACT it signed with Meta for millions of Amazon's homegrown AI CPUs. Amazon CEO Andy Jassy has made it clear that he believes AWS can build AI chips — both GPUs and CPUs — at least as well as, and possibly better than, Nvidia.

But now, with the Vera CPU, which is sold both Standalone and bundled with its Rubin GPU, Huang believes he has unlocked "a major new growth driver" for his company. He described Vera as "the world's first CPU, purpose-built for Agentic AI" on the earnings 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 declared.

He explained that while the "thinking" part of an AI model uses GPUs, Agents mostly run on CPUs. They use CPUs to perform their assigned tasks and will, he predicts, run their own form of CPU-driven PCs. Vera is specifically designed for agents because it processes tokens as fast as possible, in contrast to classic cloud architecture CPUs designed with "cores" to run multiple instances of APPlications as quickly as possible.

That sounds logical, but with major cloud providers and startups alike pursuing AI Chip development, what makes Huang confident that Nvidia will be the go-to source for agentic CPUs?

Because, as Huang pointed out, Nvidia has already sold $20 billion worth of standalone Vera CPUs this year — and the year is only just beginning.

"The world has a billion human users. My sense is that the world is going to have billions of agents — not today, but we're going to grow into it. We'll have billions of agents, and those billions of agents will all use tools. And those tools are going to be like PCs, just like us humans using PCs today," he said.