Forget about GPUs. Nvidia’s next AI gold mine could be even bigger.

Nvidia (NVDA) is already the biggest winner of the artificial intelligence (AI) boom, but Wall Street thinks new growth opportunities may just be beginning. Wedbush Securities recently claimed that Nvidia’s new Vera CPU platform could expand the company’s Total Addressable Market (TAM) far beyond graphics processors, opening the door to billions of dollars in additional revenue.

NVDA stock has cooled down after a massive rally. The stock price has risen about 28% over the past year, but has only risen about 13% since the start of 2026. Investors remain cautious due to export restrictions to China, increased competition, and profit-taking from last year’s surge in AI.

Still, Nvidia continues to maintain strong financial performance. The company handily beat Wall Street expectations for both sales and profits in its latest quarter. Combined with a reasonable valuation and some new growth drivers, NVDA stock’s recent weakness may be due to rising expectations rather than weak fundamentals.

Nvidia’s CPU push could open up an even bigger market

Nvidia dominates the AI ​​accelerator market through GPUs, but management wants to sell much more than graphics chips. In the company’s latest product presentation, CEO Jensen Huang introduced the Vera CPU, a processor designed specifically for AI workloads and agent AI systems.

Wedbush believes this move could significantly increase the total addressable market for Nvidia. Rather than competing only with AI accelerators, Nvidia can now target traditional server CPUs, network infrastructure, and complete AI computing platforms.

According to management, Vera delivers approximately 1.8 times the performance of comparable x86 processors while working with Nvidia’s AI chips. NVIDIA has reportedly started offering new processors to cloud customers, including in parts of China where regulations allow.

If adoption accelerates, the company could capture spending that previously went to companies like Intel (INTC) and AMD (AMD). That would create an even more meaningful growth engine on top of its already dominant GPU business.

A business that continues to grow at a remarkable rate

Nvidia’s latest quarterly results show that demand for AI remains very strong. Revenue for the first quarter of fiscal 2027 rose 85% year-over-year to $81.6 billion, easily exceeding analyst expectations. Data center revenue increased 92% year-over-year to $75.2 billion, highlighting that AI infrastructure remains the company’s primary growth engine.

The company also exceeded profit expectations. Net income increased 211% to $58.3 billion and EPS reached $2.39. Nvidia generated approximately $48.6 billion in free cash flow during the quarter, ending with approximately $13.2 billion in cash.

Management also issued strong guidance, forecasting second-quarter revenue of approximately $91 billion, even though it assumes no data center sales in China due to export restrictions. This outlook suggests that AI spending will remain healthy even without contributions from one of the world’s largest technology markets.

The valuation seems reasonable.

Despite its significant rise over the past two years, NVIDIA’s valuation is not as dire as many investors assume.

NVDA’s stock currently trades at about 23 times forward earnings, which is below the broader technology sector average, even though NVIDIA has delivered much faster earnings growth. The company’s PEG ratio of 0.45x also suggests that valuation remains attractive relative to expected earnings growth.

Wall Street expects NVIDIA to generate well over $300 billion in revenue in fiscal 2027, with consensus revenue estimates coming in at $8.80 per share. These predictions could continue to rise if the company is successful in expanding into CPUs alongside its main GPU franchise.

Wall Street sees significant upside potential for NVDA stock

Analysts remain overwhelmingly bullish on Nvidia’s long-term prospects. Wedbush believes the Vera CPU platform will give Nvidia new opportunities to extend its TAM beyond GPUs, increasing its competitiveness across AI infrastructure.

Overall, Wall Street’s average price target is $302.55, suggesting a significant 43% upside potential from current levels. Although concerns about China and increasing competition cannot be ignored, experts seem to agree on their view on NVDA stock. Nvidia appears poised for its next long-term growth as a leader in AI hardware, software, networking, and now CPUs.

On the date of publication, Nauman Kahn did not have (directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.