Nvidia Corporation (NVDA) is adapting its strategy in response to the evolving demands of artificial intelligence (AI), particularly with the emergence of agentic AI, which favors Central Processing Units (CPUs) over Graphics Processing Units (GPUs). On March 11, 2026, during the Nvidia GTC AI conference, the company announced its new 88-core Vera data center CPUs, designed to deliver 50% increased performance compared to traditional CPUs, reflecting a shift expected to reshape the compute landscape. The CPU market is projected to grow from $27 billion in 2025 to $60 billion by 2030, according to Bank of America.
Nvidia has recently reinforced its position in the market through a partnership with Meta Platforms, Inc. (META), aimed at enhancing data center performance. The deployment of Grace CPUs is expected to improve efficiencies significantly, demonstrating the growing role of CPUs in managing AI tasks. Nvidia is now poised to capitalize on this pivotal change, as the demand for CPUs surges amidst a backdrop of shifting technological needs.
