Nvidia Earnings: What Investors Should Watch Beyond $1 Trillion GPU Opportunity

Nvidia's upcoming earnings report on August 26 will be closely watched by investors, particularly regarding its $1 trillion GPU opportunity.

The company's data center division, which accounts for most of Nvidia's revenue, is expected to generate nearly $368 billion in fiscal 2027 and nearly $531 billion in fiscal 2028, according to Wall Street consensus estimates.

However, investors should not overlook Nvidia's central processing unit (CPU) business, which has seen a resurgence due to agentic artificial intelligence. Nvidia CEO Jensen Huang said the launch of its Vera CPU opens up a $200 billion total addressable market and expects about $20 billion in CPU revenue this year alone.

Huang believes that CPUs will become a bigger part of the market, with Intel's CEO Lip-Bu Tan also predicting that the ratio of CPUs to GPUs used for AI inference could approach parity or better in the future.