By Bram Berkowitz, The Motley Fool
Publication Date: 2026-05-26 10:50:00
As has become the norm, the artificial intelligence (AI) chip giant Nvidia (NASDAQ: NVDA) recently reported strong earnings for the first quarter of its fiscal 2027.
The company reported adjusted earnings and revenue ahead of Wall Street estimates and also provided a current-quarter revenue outlook well ahead of analysts’ expectations.
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However, the unexpected part of the quarter came when Nvidia Chief Executive Officer Jensen Huang, on the earnings conference call, announced that the company is making a big move in central processing units (CPU) and is expecting a strong year of revenue from the division, as well as a new total addressable market.
Did Nvidia just say “checkmate” to Intel and Advanced Micro Devices?
CPUs are now a big part of the AI story, and Nvidia isn’t sitting on its laurels
In recent years, one of the big parts of the AI story, particularly as it relates to Nvidia, has been graphics processing units (GPUs), chips that are vital for training large language models (LLMs) and which are deployed in data centers specifically designed to run AI solutions.
GPUs have parallel processing capabilities and can therefore process much more data and consider many more solutions to a problem…