Nvidia Just Delivered Bad News for AMD and Intel

NVDA is pushing hard into the CPU market, setting up a direct collision with INTC and AMD in their core territory. The company reported Q2 earnings with projected annual revenue growth of 70% for fiscal 2028, well above the Street's 44% estimate. The catalyst: NVDA's new Vera CPU for AI agents, which management expects will generate $20 billion in CPU revenue for fiscal 2027 and more than double in fiscal 2028.

The move extends NVDA's AI dominance beyond GPUs into processing territory long controlled by INTC and AMD. NVDA is betting the agentic AI buildout—systems that deploy autonomous software agents—will require its integrated CPU architecture. The $20 billion fiscal 2027 CPU target alone would represent a meaningful revenue stream in a market INTC and AMD have historically split.

While the expanding agentic AI opportunity may create headroom for multiple suppliers, NVDA's entrance with purpose-built silicon and an installed AI customer base shifts competitive dynamics. Both INTC and AMD will face margin and share pressure as hyperscalers evaluate NVDA's vertically integrated offering against incumbent x86 solutions.