Nvidia Aims to Dominate Agentic AI Workload Market with CPU Ambitions
Nvidia is making significant strides in its CPU ambitions, aiming to more than double its current revenue by fiscal year 2028. According to CFO Colette Kress, Nvidia currently generates around $20 billion in CPU revenue for fiscal year 2027, combining standalone Grace and Vera CPUs with those integrated into superchips. The company expects this figure to reach approximately $40 billion by fiscal year 2028, a substantial growth that will make Intel and AMD executives take notice.
Nvidia's CPU push is not about competing in the traditional general-purpose computing market, but rather targeting a $200 billion total addressable market focused on agentic AI workloads. The company has already seen early demand for its Vera CPU supporting a trend toward 1:1 CPU-to-GPU ratios in AI deployments, indicating potential for significant growth.
Nvidia's integrated stack is a key differentiator, offering data center operators the ability to source GPUs, CPUs, networking (via Nvidia's InfiniBand and Ethernet offerings), and software from a single vendor. Analysts expect Nvidia's agentic CPU revenues to grow steeply, with Wolfe Research projecting $6.6 billion in 2026, $14 billion in 2027, and $24.6 billion by 2028.