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Nvidias Vera CPU Could Expand AI Hardware Reach Beyond GPUs, Wedbush Says
Nvidia Corporation (NVDA) has reported record earnings for the first quarter of fiscal 2027, with revenue of $81.6 billion—an 85 % year‑over‑year increase—and data‑center revenue of $75.2 billion, up 92 % YoY. Net income rose 211 % to $58.3 billion, and the company generated $48.6 billion in free cash flow. Management projected second‑quarter revenue of $91 billion, even after excluding China data‑center sales because of export restrictions.
The company’s stock has cooled from a 28 % gain over the past year to a 13 % rise in 2026, as investors weigh export limits, growing competition, and profit‑taking after the AI boom. Despite the slowdown, Nvidia’s valuation remains modest relative to its peers: the stock trades at roughly 23 times forward earnings and a PEG ratio of 0.45.
Wedbush Securities has highlighted Nvidia’s new Vera CPU platform as a potential driver of additional growth. The Vera CPU is designed for agentic AI workloads such as reinforcement learning, code execution, and data‑pipeline orchestration. According to Nvidia, the chip delivers about 1.8 times the performance of comparable x86 processors while working in tandem with Nvidia’s GPU accelerators.
Nvidia has begun offering Vera to cloud customers, including some in China where regulations permit. If the platform gains traction, the company could capture spending that previously went to Intel and AMD for server CPUs. Wedbush’s analysis suggests that expanding into CPUs could broaden Nvidia’s total addressable market beyond GPUs, creating a new growth engine.
The AI accelerator market has seen a gradual shift in share. In 2024 Nvidia held a 90 % share of the discrete AI accelerator market, but that share has slipped to about 68 % in early 2026, with competitors such as AMD and custom silicon gaining ground. Nevertheless, Nvidia’s absolute revenue continues to climb as the overall market expands.
Wall Street remains bullish on Nvidia. Wedbush raised its price target to $300 from $230, citing sustained AI infrastructure spending. The average analyst target is $302.55, implying a 43 % upside from current levels. Nvidia’s market cap is near $4 trillion, and the company has been described as a “full‑stack platform provider” that has built a moat around its GPU dominance.
Nvidia’s Q1 2027 results also included a record $20 billion in shareholder returns through shares repurchased and dividends. The company’s cash balance at the end of the quarter was $38.5 billion.
In summary, Nvidia’s financial performance remains strong, and the Vera CPU platform could open a new revenue stream by targeting traditional server CPUs and networking infrastructure. While export restrictions and competition pose risks, the company’s valuation and earnings growth suggest that investors expect continued expansion in AI hardware and software.
The next few months will be critical to see whether the Vera CPU gains wider adoption and whether Nvidia can maintain its leadership in the evolving AI infrastructure landscape.
The company’s stock has cooled from a 28 % gain over the past year to a 13 % rise in 2026, as investors weigh export limits, growing competition, and profit‑taking after the AI boom. Despite the slowdown, Nvidia’s valuation remains modest relative to its peers: the stock trades at roughly 23 times forward earnings and a PEG ratio of 0.45.
Wedbush Securities has highlighted Nvidia’s new Vera CPU platform as a potential driver of additional growth. The Vera CPU is designed for agentic AI workloads such as reinforcement learning, code execution, and data‑pipeline orchestration. According to Nvidia, the chip delivers about 1.8 times the performance of comparable x86 processors while working in tandem with Nvidia’s GPU accelerators.
Nvidia has begun offering Vera to cloud customers, including some in China where regulations permit. If the platform gains traction, the company could capture spending that previously went to Intel and AMD for server CPUs. Wedbush’s analysis suggests that expanding into CPUs could broaden Nvidia’s total addressable market beyond GPUs, creating a new growth engine.
The AI accelerator market has seen a gradual shift in share. In 2024 Nvidia held a 90 % share of the discrete AI accelerator market, but that share has slipped to about 68 % in early 2026, with competitors such as AMD and custom silicon gaining ground. Nevertheless, Nvidia’s absolute revenue continues to climb as the overall market expands.
Wall Street remains bullish on Nvidia. Wedbush raised its price target to $300 from $230, citing sustained AI infrastructure spending. The average analyst target is $302.55, implying a 43 % upside from current levels. Nvidia’s market cap is near $4 trillion, and the company has been described as a “full‑stack platform provider” that has built a moat around its GPU dominance.
Nvidia’s Q1 2027 results also included a record $20 billion in shareholder returns through shares repurchased and dividends. The company’s cash balance at the end of the quarter was $38.5 billion.
In summary, Nvidia’s financial performance remains strong, and the Vera CPU platform could open a new revenue stream by targeting traditional server CPUs and networking infrastructure. While export restrictions and competition pose risks, the company’s valuation and earnings growth suggest that investors expect continued expansion in AI hardware and software.
The next few months will be critical to see whether the Vera CPU gains wider adoption and whether Nvidia can maintain its leadership in the evolving AI infrastructure landscape.
