Nvidia Expands into Server CPUs with Rapid Growth Signal for AMD and Intel
In its latest earnings report, Nvidia revealed significant growth in its server CPU business, signaling a potential challenge to long-standing market leaders AMD and Intel. The company's Grace CPU has already generated $5 billion in trailing revenue over the past year, while its new Vera chip is being sold as a standalone product rather than bundled into larger systems. CFO Colette Kress highlighted that Nvidia expects demand for around $20 billion worth of server CPUs this fiscal year, with CEO Jensen Huang framing it as part of an AI-driven shift toward autonomous agents. Nvidia's strategy involves integrating Vera into its Rubin platform to attract hyperscalers and reduce reliance on x86 CPUs from AMD and Intel. This approach has raised concerns among analysts, particularly after Morgan Stanley described the $20 billion forecast as unexpected but confirmed by customer checks. While both AMD and Intel are growing their data center segments, they do not report standalone server CPU revenue separately, making direct comparisons difficult. AMD's x86 server CPU market share rose to 34.5% in Q2, while Intel retained about 65.5%. Both companies continue product development but face a rapidly evolving landscape as Nvidia accelerates its push into the space.
Topics: AI chips market competition Nvidia earnings server CPUs