Jensen Huang says he’s found a ‘brand new’ $200B market for Nvidia

Jensen Huang, the visionary founder and CEO of Nvidia, is once again capturing attention with bold claims about the future of his company. Following another impressive quarterly performance, where Nvidia reported a staggering $81.6 billion in revenue and projected $91 billion for the upcoming quarter, Huang announced the emergence of a 'brand new' $200 billion total addressable market (TAM) for Nvidia, driven by the introduction of their innovative CPU, Vera. During a recent earnings call, Huang highlighted Vera not just as a new product, but as a potential game-changer for the industry. He believes this CPU, which was launched in March, is essential for the next evolution of AI technology. While Nvidia has long dominated the GPU market, the CPU sector has historically been the domain of giants like Intel and AMD. However, Huang's confidence stems from promising early sales figures for Vera, which he describes as the world’s first CPU specifically engineered for agentic AI. Despite Nvidia's robust performance, there are lingering concerns on Wall Street about potential challenges that could disrupt its ascent. Competitors like Amazon Web Services have begun to make significant strides in AI chip development, recently announcing a major contract with Meta for their own AI CPUs. Yet, Huang remains optimistic, asserting that Nvidia's strategic partnerships with major hyperscalers and system manufacturers will solidify its position in this new market. He articulated that while GPUs are primarily responsible for the 'thinking' aspect of AI, CPUs play a critical role in executing tasks assigned to AI agents. With Vera's unique design focused on rapid token processing, Huang envisions a future where billions of AI agents will require advanced computing tools—much like the PCs used by humans today. This transformation, he insists, will drive an unprecedented demand for CPUs, positioning Nvidia at the forefront of a monumental shift in computing. In Huang's view, the world is on the cusp of a significant evolution, and he is confident that Nvidia will be the key player in powering this new era of agentic AI and robotic technology. With $20 billion in standalone Vera CPU sales already achieved this year, he believes the potential for growth is immense, signaling a promising horizon for both Nvidia and the broader tech landscape.