Wedbush Securities analysts suggested Nvidia NASDAQ:NVDA, the AI chipmaker behind GPUs and next-generation data center hardware, may have another growth lever as its Vera CPU is expected to feature a high core count that could help it outperform CPUs based on x86 architecture. Traditional x86 architecture CPUs are made by Intel, a major U.S. semiconductor company, and AMD, a U.S. chipmaker known for CPUs and GPUs.
Matt Bryson, a Wedbush Securities analyst, said Nvidia first made the case at this year's GTC that its compute platform does more than support accelerators, potentially opening the door to markets once expected to be led by x86-based processors. Bryson viewed the test as reinforcing that argument, while pointing to Nvidia's move into adjacent hardware markets such as networking and general-purpose compute as a possible driver of the company's growth story over the next few years.
For investors, the update may matter because it suggests Nvidia is trying to expand its total addressable market beyond its existing accelerator strength. Nvidia shares were modestly higher in premarket trading Thursday, indicating investors may be paying attention to whether Vera can support a broader hardware opportunity for the Jensen Huang-led company.