Nvidia has been hit hard by export restrictions on its semiconductor chips to China, but the company is now turning its attention to the growing CPU market. CEO Jensen Huang admitted that Nvidia’s chip market share in China was wiped out due to these restrictions, but he’s optimistic about the company’s new Vera central processing unit (CPU) and the massive addressable market it presents.
The Vera CPU is expected to generate nearly $20 billion in revenue this year, surpassing Nvidia’s previous chip revenue in China. Although the company saw a significant decline in revenue from China last fiscal first quarter, its steady stream of product releases has helped maintain momentum. The GPU leader is now expanding into CPUs and entering a market dominated by Intel and AMD.
The Vera Rubin computing platform features seven purpose-built chips that deliver up to 35x higher inference throughput, making it an attractive option for AI demand. Analysts expect Nvidia’s full-year revenue to increase 81% from last year to $391 billion, with the company poised to drive significant growth in the CPU market. With its valuation 22 times this year’s earnings estimate, Nvidia looks like a cheap stock relative to Wall Street’s earnings growth estimates for the next few years.
Despite uncertainty surrounding government regulations on chip exports, Nvidia is well-positioned to take advantage of the growing demand for CPUs. The company’s new product releases and innovative technologies have helped maintain its competitive edge, and investors may be overlooking the potential for long-term growth in the stock.
Source: https://www.fool.com/investing/2026/06/26/jensen-huang-nvidias-china-zero-20-billion-plan