Analyst says Nvidia poised to capture two-thirds of the x86 server CPU market from Intel and AMD with expected $20 billion in revenue — ‘Nvidia is already on track’ to deliver 4 million Vera CPUs in FY2027
This week, Nvidia released its Q1 2027 results, posting a record-breaking $81.65 billion in revenue thanks to sales of its AI and data center products. Colette Cress, chief financial officer of Nvidia, said that he expects sales of the company’s Grace and Vera CPUs for data centers to hit $20 billion this fiscal year, thus outselling both AMD and Intel and becoming the world’s largest supplier of processors by revenue. This is a realistic expectation, principal analyst and president ofMercury Research, Dean McCarron, tells Tom’s Hardware Premium.
Outselling AMD and Intel
“Vera CPU opens a brand-new $200 billion TAM for Nvidia, a market we have never addressed before,” Cress said during the company’s conference call with financial analysts and investors. “Every major hyperscale and system maker is partnering with us to get it deployed. We have visibility to nearly $20 billion in total CPU revenue this year, setting us up to become the world-leading CPU supplier.”
Nvidia later clarified that the $20 billion figure includes sales of Grace and Vera processors within Superchip combinations, NVL72 systems, and standalone CPUs sold either as racks aimed at agentic AI workloads or other applications.
(Image credit: Tom’s Hardware)
Intel’s data center and AI (DCAI) division’s revenue totaled $16.8 billion last year, whereas AMD’s data center unit earned $16.635 billion in 2025. While CPUs account for the lion’s share of earnings of these business units, their sales are by far…
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