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

Nvidia CEO Jensen Huang has identified a "brand new $200 billion TAM" (Total Addressable Market) for the company. This significant expansion is driven by Nvidia's new Vera CPU, which was introduced in March and is designed specifically for "agentic AI." This development marks a strategic shift for Nvidia, traditionally known for its dominance in GPUs.

Huang revealed this during Nvidia's recent earnings call, where the company reported a record-breaking quarter with $81.6 billion in revenue and projected $91 billion for the next quarter. Despite Nvidia's continued success, Wall Street has expressed concerns about potential future challenges to its market position, particularly regarding CPU market competition.

Vera is uniquely positioned as the "world's first CPU, purpose-built for agentic AI." Huang explained that while the "thinking" aspect of AI models uses GPUs, the agents themselves primarily run on CPUs. These agents will perform assigned tasks and are expected to drive the need for a new generation of CPU-driven "PCs" tailored for AI.

The Vera CPU is designed for rapid token processing, a critical function for agentic AI, differentiating it from traditional cloud architecture CPUs optimized for running multiple instances. Huang emphasized that Nvidia has already achieved $20 billion in standalone Vera CPU sales this year, demonstrating early market validation.

Looking ahead, Huang envisions a future with "billions of agents" that will require specialized CPUs and tools, similar to how humans use PCs today. He stated, "We're going to need a lot more CPUs," highlighting the vast potential of this emerging market for Nvidia.