While some analysts are anxious over rising competition for Nvidia, CEO Jensen Huang says that he has found a 'brand new' $200 billion market

Nvidia posted a record-breaking $81.6 billion in quarterly revenue and forecasted an even higher $91 billion for the upcoming quarter. Following the blockbuster results, Nvidia CEO Jensen Huang outlined a massive strategy shift during the earnings call, projecting a brand-new $200 billion total addressable market (TAM) driven by the company’s new "Vera" CPU.

The announcement comes at a critical time. Despite Nvidia’s dominant run, Wall Street analysts have expressed lingering anxiety over rising competition for the company's armor -- specifically its reliance on the graphics processing unit (GPU) market. Traditionally, the Central Processing Unit (CPU) market has been dominated by rivals like Intel and AMD. Meanwhile, cloud giants have been trying to cut out the middleman; just last month, Amazon Web Services (AWS) secured a massive contract with Meta for millions of its own homegrown AI CPUs.

AWS CEO Andy Jassy has publicly stated that Amazon can develop AI silicon capable of rivaling Nvidia’s performance. Similarly, earlier this year, Google debuted two AI processors during its Google Cloud Next 2026 conference in Las Vegas.

The new chips, called the TPU 8t and TPU 8i, push Google further into competition with partner Nvidia.Huang’s counter-offensive is the Vera CPU, which launched in March. Sold both as a standalone chip and bundled alongside Nvidia's next-generation Rubin GPU, Vera is designed to tackle the emerging frontier of "agentic" and robotic artificial intelligence.

"Vera opens a brand new $200 billion TAM for Nvidia, a market we have never addressed before," Huang said during the call, noting that every major hyperscaler and system builder is already partnering to deploy it.

Reengineering the CPU for AI Agents

According to Huang, the fundamental architecture of computing is changing. While the heavy lifting of training and "thinking" in AI models happens on GPUs, the execution of tasks by autonomous AI agents relies heavily on CPUs.Traditional cloud CPUs are built around "cores" optimized to run multiple applications simultaneously. In contrast, Nvidia engineered Vera from the ground up to process data tokens as fast as possible, tailoring it specifically to power AI agents that act as digital workers."The world has a billion human users," Huang explained. "My sense is that the world is going to 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. We’re going to need a lot more CPUs."While skeptics might view a $200 billion market projection as classic corporate optimism, Nvidia claims chips are already showing early traction. Huang revealed that Nvidia has already booked $20 billion in sales for standalone Vera CPUs this year alone.