Nvidia Sees Huge Potential in Custom CPUs

Nvidia is poised to become a major player in the CPU market after Elon Musk's SpaceX announced that it will exclusively use Nvidia GPUs. This move has significant implications for Nvidia, with its stock on top of the market cap leaderboards.

The Vera Rubin era is upon us, and Nvidia's next-generation GPU is expected to be a hot seller. To further boost growth, Nvidia needs to expand beyond its current strengths in GPUs and explore new markets, including custom CPUs. According to Nvidia, the CPU market could be worth $200 billion, with early signs suggesting that Vera will hit the ground running.

Nvidia's move into custom CPUs is seen as a natural extension of its existing business, given the company's expertise in AI chips and its ability to raise the bar on performance and efficiency. With agentic-first CPUs gaining importance in the tech world, Nvidia's Vera Rubin chip could be a major contributor to this trend.

Nvidia has only scratched the surface of the CPU market, but with its dominance in GPUs as a reference point, it is well-positioned to repeat its success in CPUs. The company's RTX Spark desktop chip adds to its momentum in the world of CPUs. Dr. Michael Burry's short position on Nvidia may prove costly for those holding bearish put options or short positions.