Nvidia Is Doubling Down on the CPU Market. That's Bad News for AMD and Intel Stock Investors

Key Points:

• Nvidia has dominated the GPU market, controlling 95% of the gaming GPU sector by the end of 2025, and has extended its dominance into data centers, especially for AI training workloads.
• As AI shifts from training to inference, Nvidia is targeting the CPU market, traditionally led by AMD and Intel, by launching Arm-based CPUs like the Vera server CPU and the RTX Spark Superchip for PCs and laptops.
• The CPU market is growing due to increased demand for AI inference and edge AI devices, with AMD projecting the server CPU market to reach $120 billion by 2030 and the generative AI PC market expected to grow from $91 billion in 2024 to $260 billion by 2031.
• Nvidia’s new RTX Spark Superchip, designed for Windows laptops and PCs, will be integrated into devices from major OEMs like Asus, Dell, Lenovo, MSI, Microsoft, and HP, signaling a direct challenge to AMD and Intel's client CPU market share.
• Arm-based CPUs, including Nvidia's offerings, are rapidly gaining market share, with projections that Arm-based processors could constitute 90% of the server CPU market by 2029, threatening the dominance of x86-based AMD and Intel CPUs.