Jensen Huang says Nvidia includes China in $200 billion CPU-market forecast

Jensen Huang used a brief answer in Taipei to clarify a bigger point in Nvidia’s latest growth pitch. Asked on May 23 whether Nvidia’s forecast for a $200 billion CPU market included China, the chief executive said, “I would think so.” The comment came days after Nvidia’s May 20 quarterly report, where Huang told investors the company’s new Vera central processors open access to a $200 billion market opportunity. Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion, up 85% from a year earlier, according to the company’s investor materials. (cnbc.com) The answer matters because Nvidia is simultaneously telling investors that CPUs are a new growth lane while still facing export limits and approval hurdles in China for advanced AI chips. Reuters, carried by CNBC and other outlets, reported Huang’s Taipei remarks after the company’s earnings call. ### What exactly did Huang say in Taipei? (fool.com) Jensen Huang told reporters at Taipei’s Songshan airport on May 23 that China was included in Nvidia’s CPU market forecast. Asked directly whether the $200 billion figure included China, he replied, “I would think so,” CNBC reported. CNBC said Huang made the remark while discussing the same market opportunity he had outlined on Nvidia’s earnings call earlier that week. (cnbc.com) In that report, CNBC said Huang’s answer signaled Nvidia still sees long-term demand in China even amid U.S.-China technology tensions. ### Where did the $200 billion number come from? (cnbc.com) Nvidia told investors on its May 20 earnings call that Vera, its new CPU platform, gives the company access to a $200 billion market opportunity. A transcript of the call summarized Vera as opening that market, while also describing Nvidia’s expectation for $20 billion in standalone CPU revenue for the year. (cnbc.com) Nvidia had introduced Vera on March 16 and described it as a processor built for “agentic AI” and reinforcement learning. The company said customers and partners working with Vera include Alibaba, ByteDance, Meta, Oracle Cloud Infrastructure, Dell Technologies, HPE, Lenovo and Supermicro. (fool.com) ### Why is China notable in this forecast? China is notable because Nvidia’s most advanced AI chip sales there remain constrained by U.S. export controls and Chinese approval issues. CNBC reported that Nvidia has received U.S. licenses to sell H200 chips to China, but deliveries have not proceeded because Chinese officials have not approved them. (investor.nvidia.com) Reuters, as cited by CNBC, also reported that around 10 Chinese firms had been cleared by the U.S. side to buy H200 chips, but no deliveries had been made. Huang said in Taipei that “H200 has been licensed to ship to China” and called the market “very important” and “very large.” ### Is Nvidia talking about CPUs instead of GPUs now? (cnbc.com) Nvidia is talking about CPUs as an addition, not a replacement. CNBC reported that central processing units have gained prominence as companies build more systems for agentic AI, broadening demand beyond the graphics processors Nvidia is best known for. The company’s March 16 Vera announcement framed that shift in similar terms, saying infrastructure for planning, tool use, data access and code execution is becoming more important as AI systems take on more autonomous tasks. (cnbc.com) Nvidia said Vera builds on its Grace CPU line and is aimed at large-scale AI services. ### What comes next? Computex in Taipei is the next visible checkpoint. CNBC reported Huang was in Taipei ahead of next month’s trade show, where Nvidia’s roadmap, Taiwan supply-chain ties and China questions are likely to remain in focus. Nvidia’s investor relations site says the May 20 webcast and related materials remain available as part of its first-quarter fiscal 2027 results. (investor.nvidia.com) The company’s next formal earnings update will be its second-quarter fiscal 2027 report, which Nvidia typically posts through its investor website. (investor.nvidia.com) (cnbc.com)