Nvidia unveils Vera CPU to expand AI market beyond GPUs
The announcement follows strong Q1 fiscal 2027 results, with revenue rising 85% year-on-year to $81.6 billion. Despite recent stock cooling due to export restrictions and competition, analysts remain bullish, citing attractive valuation metrics and strong forward guidance.
Nvidia has introduced the Vera CPU, a processor designed specifically for AI workloads and agentic AI systems, marking a strategic expansion beyond its dominant graphics processing unit business. CEO Jensen Huang presented the chip during the company’s latest product presentation, stating it delivers approximately 1.8 times the performance of comparable x86 processors. This move is viewed by Wall Street analysts, including Wedbush Securities, as a significant growth catalyst capable of capturing market share from competitors such as Intel and AMD.
The announcement follows Nvidia’s strong first quarter of fiscal 2027 results, where revenue rose 85% year-on-year to $81.6 billion. Net income surged 211% to $58.3 billion, driven by a 92% year-on-year increase in data centre revenue to $75.2 billion. The company also issued strong guidance for the second quarter, forecasting approximately $91 billion in revenue, despite assuming no sales to China’s data-centre market due to export restrictions.
Wedbush Securities argues that the Vera CPU platform could significantly increase Nvidia’s total addressable market by targeting traditional server CPUs, networking infrastructure, and complete AI computing platforms. Reports indicate Nvidia has begun offering the new Vera processors to cloud customers, including some in China where regulations permit. If adoption accelerates, the company could capture spending that previously went to companies such as Intel and AMD.
Nvidia’s stock has cooled recently, gaining only about 13% in 2026 after a 28% rise over the past year. Investors have cited caution due to export restrictions, growing competition, and profit-taking. However, analysts note that Nvidia’s valuation appears attractive, trading at roughly 23 times forward earnings and a PEG ratio of 0.45 times, which is below the broader tech sector average.
The Wall Street average price target for Nvidia stands at $302.55, implying potential upside of 43% from current levels. Consensus earnings estimates have moved to $8.80 per share, with expectations for fiscal 2027 revenue to exceed $300 billion. Analysts remain bullish, citing the company’s strong forward guidance and the potential for the Vera CPU to serve as another meaningful growth engine alongside its dominant GPU business.
