Nvidia is making a bold move into the CPU market, projecting a $200 billion total addressable market for the segment, a space it has never seriously competed in. CEO Jensen Huang confirmed that forecast includes anticipated demand from China, despite ongoing US export restrictions on advanced AI chips to that country.
At the heart of this push is Vera, Nvidia's new CPU, unveiled in March 2026 and described as the 'world's first CPU, purpose-built for agentic AI.' Nvidia is projecting nearly $20 billion in standalone CPU revenue visibility for the current fiscal year. Initial deliveries have already gone out to major AI players: Anthropic, OpenAI, and Oracle.
Nvidia posted $81.6 billion in revenue for the quarter, an 85% increase year-over-year, with data center sales accounting for $75.2 billion. The company expects Q2 revenue to reach $91 billion, guidance that includes no China data center compute revenue. The $200 billion CPU TAM forecast, however, does include China.
This move represents a vertical integration strategy for Nvidia. Already dominant in GPUs, the company now offers a complete AI stack: the GPU for training and inference, and the CPU for orchestrating AI agents. Including China in the long-term forecast while excluding it from near-term guidance suggests Nvidia is betting on eventual easing of export restrictions or the development of compliant products for that market.