NVIDIA (NASDAQ:NVDA) shares pulled back following its earnings report and are now approaching a key support level as Jensen Huang eyes the vast $200 billion CPU market. It ended the week at $215, slightly above the key support at $212.
NVIDIA Is Betting On The $200 Billion CPU Market
Jensen Huang, NVIDIA's CEO, has fueled the company to become a $5.2 trillion juggernaut by dominating the Graphics Processing Unit industry, which has become essential in AI. Its Blackwell chips are now used to power the biggest AI companies like Microsoft and OpenAI.
Now, the company is focusing on the Central Processing Unit (CPU) industry, making it a key competitor to Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC). In a statement today, Huang predicted that this is a massive $200 billion industry. His prediction of the market size includes China, a crucial market in the industry.
There are early signs that demand for CPUs is soaring as companies shift to agentic AI. Agentic AIs are computer programs trained to perform certain tasks, like programming and shopping. The company is now working on the Vera Rubin platform that it hopes will catch up with its top competitors.
