Jensen Huang Just Made a Surprise Announcement. Here's What It Means for Nvidia Investors.
Key Points
Nvidia increased revenue by 85% year over year in its latest quarter.
Nvidia is developing its first CPU built specifically for agentic AI.
A new $200 billion total addressable market may be unlocked with agentic AI CPUs.
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Few companies have an intense spotlight on them quite like Nvidia (NASDAQ: NVDA). As one of the most important players in the artificial intelligence (AI) ecosystem, Nvidia's performance often serves as a benchmark for the AI world as a whole. And that attracts a lot of attention.
That attention hit a new level during the fiscal 2027 Q1 (ended April 26) earnings call, when its CEO, Jensen Huang, announced something exciting. Huang noted that Nvidia's Vera Rubin platform -- which includes a central processing unit (CPU) built specifically for agentic AI -- is entering a new $200 billion total addressable market (TAM).
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This change opens a new revenue stream for Nvidia and is also a crucial next step in the company's development, moving from a graphics chip company to an AI hardware giant to a full-stack AI utility ecosystem.
In its most recent quarter, Nvidia made $81.6 billion in revenue, up 85% year over year. Of that revenue, over 92% ($75.2 billion) came from Nvidia's data center segment alone. Data center hardware will continue to be Nvidia's primary revenue generator for the foreseeable future, but the introduction of its Vera Rubin platform puts Nvidia in a position to be one of the leading CPU suppliers in the world (if not the leading one).
Nvidia expects its stand-alone CPU revenue to be $20 billion this year. How it eventually materializes remains to be seen, but the projections are worth getting excited for if you're invested in Nvidia.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
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