Nvidia Targets CPU Market, Challenging AMD and Intel
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: Fool
- Market Share Shift: Nvidia controlled 95% of the gaming GPU market by the end of 2025, demonstrating its dominance in graphics processing and solidifying its leadership in AI and machine learning sectors.
- CPU Market Potential: Nvidia's Vera server CPU is expected to drive $2 billion in revenue this fiscal year, indicating strong demand that could challenge AMD and Intel's market shares.
- New Product Launch: Nvidia's RTX Spark Superchip aims to support AI applications and gaming for PCs and laptops, set to launch this fall, further expanding its influence in the consumer electronics market.
- Arm Architecture Advantage: Nvidia's Grace and Vera CPUs are based on Arm architecture, with projections showing that Arm-based CPUs could capture 90% of the server market by 2029, providing significant growth momentum for Nvidia in the CPU sector.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia's Stock Surge and Dividend Analysis
- Outstanding Stock Performance: As of June 17, Nvidia's shares have surged 1,050% over the past five years, highlighting its strong position in the AI boom and attracting significant investor interest.
- Dividend Increase: In May, Nvidia raised its quarterly dividend from $0.01 to $0.25 per share, yet investors need to own 10,000 shares to generate $10,000 in annual income, indicating limited appeal for income-focused investors.
- High Investment Cost: At the current price of $206.45, investors would need to spend nearly $2.1 million to acquire enough shares for passive income, making it unattractive for those seeking stable cash flow.
- Low Dividend Yield: With a dividend yield of only 0.48%, significantly below the S&P 500 average of 1.04%, Nvidia is better suited for growth investors looking for capital appreciation rather than dividend income.
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- Significant Sales Growth: In fiscal 2025, Broadcom's AI chip sales surged 65% to $20 billion, accounting for 31% of total revenue, with projections to reach at least $100 billion by fiscal 2027, representing over 58% of revenue, indicating strong market demand and growth potential.
- Increased Customer Demand: As the AI market expands, Broadcom's hyperscale customers are expected to ramp up chip purchases, reducing infrastructure costs and long-term dependence on Nvidia by installing more custom ASICs, thereby further solidifying their market position.
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- Outstanding Stock Performance: As of June 17, Nvidia's shares have surged 1,050% over the past five years, highlighting its strong position in the AI boom and attracting significant investor interest.
- Dividend Increase: In May, Nvidia raised its quarterly dividend from $0.01 to $0.25 per share, yet investors need to own 10,000 shares to generate $10,000 in annual income, indicating limited appeal for income-focused investors.
- High Investment Cost: At the current price of $206.45, investors would need to spend nearly $2.1 million to acquire enough shares for passive income, making it unattractive for those seeking stable cash flow.
- Low Dividend Yield: With a dividend yield of only 0.48%, significantly below the S&P 500 average of 1.04%, Nvidia is better suited for growth investors looking for capital appreciation rather than dividend income.
See More
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- Return Analysis: Over the past decade, the United States Oil Fund (USO) has only achieved a total return of 22.46%, while crude oil prices surged from $16.55 to $114.84, indicating that investors failed to effectively capture price movements, reflecting the fund's structural costs.
- Futures Roll Decay: USO rolls its front-month NYMEX WTI futures contracts monthly, and when the futures curve is in contango, the fund sells the cheaper expiring contract and buys the more expensive next one, leading to a monthly bleed in net asset value (NAV) even when spot crude prices remain flat.
- Tax Complexity: As a commodity pool limited partnership, USO investors receive a K-1 tax form, with long-term gains taxed at 60% and short-term gains at 40%, regardless of holding period, which adds unexpected accounting costs for investors.
- Market Risk Warning: As of June 17, 2026, USO is up 65.17% year-to-date, but analysts warn that if the Strait of Hormuz reopens, crude futures could quickly decline, erasing USO's yield advantage, with a 14.94% drop in the past week already observed.
See More
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- Bitcoin Price Fluctuation: Bitcoin traded around $63,000 on June 19, down from $65,000 at the week's start, reflecting market sensitivity to the Fed's interest rate hike signals, which may further weaken investor confidence.
- Bearish Options Traders: Options traders are betting that Bitcoin's price could fall to $52,000 in the coming weeks, indicating a panic sentiment in the market regarding interest rate hikes, potentially leading to more investors exiting digital assets.
- Ethereum Foundation Executive Resignation: Hsiao-Wei Wang, the executive director of the Ethereum Foundation, has resigned, marking turmoil in the organization's leadership that could impact its strategic direction and project advancement.
- New ETF Plans: Franklin Templeton is planning to launch ETFs that convert corporate dividends into Bitcoin, which, if approved, would provide investors with new investment avenues and potentially boost Bitcoin demand.
See More
Marvell Stock Soars as CFO's Sale Raises Investor Questions
- CEO Praise Boosts Stock: Nvidia CEO Jensen Huang praised Marvell Technology at the Computex conference, stating it will be the next semiconductor stock to reach a trillion-dollar valuation, which directly propelled Marvell's stock price significantly in subsequent trading sessions.
- S&P 500 Inclusion: Marvell announced its inclusion in the S&P 500 index effective June 22, further enhancing market confidence in its future performance and attracting increased investor interest.
- CFO Stock Sale: Marvell CFO Willem Meintjes filed to sell approximately 211,000 shares, estimated to be worth around $65 million based on the closing price on June 15, raising questions among investors regarding the motivations behind this transaction.
- Leadership Transition Impact: With Meintjes stepping down after 10 years and Dan Durn, former CFO of Adobe, taking over, while the stock sale raises concerns, analysts believe it does not indicate underlying issues at Marvell, highlighting the company's strong performance amid favorable AI-driven market conditions.
See More
Broadcom's Rapid Growth in the AI Market
- Surge in AI Chip Sales: In fiscal 2025, Broadcom's AI chip sales soared by 65% to $20 billion, accounting for 31% of its total revenue, with projections indicating this could rise to at least $100 billion by fiscal 2027, representing over 58% of revenue, highlighting its robust growth potential in the AI sector.
- Rising Customer Demand: As the AI market expands, Broadcom's hyperscale customers are expected to ramp up chip purchases, enabling them to reduce infrastructure costs by installing more custom ASICs, thereby decreasing long-term dependence on Nvidia and enhancing competitive positioning.
- Diverse Product Portfolio: Broadcom also offers a wide range of non-AI chips across mobile, data center, and networking sectors; while these segments are not growing as rapidly, bundling products can lock in customers and widen its competitive moat across various markets.
- Attractive Investment Value: Analysts forecast Broadcom's revenue and EPS to grow at CAGRs of 53% and 66% from fiscal 2025 to 2028, yet it trades at just 25 times next year's earnings, indicating a compelling investment opportunity relative to its growth rate in the booming AI market.
See More
Broadcom's AI Chip Sales Surge
- Significant Sales Growth: In fiscal 2025, Broadcom's AI chip sales surged 65% to $20 billion, accounting for 31% of total revenue, with projections to reach at least $100 billion by fiscal 2027, representing over 58% of revenue, indicating strong market demand and growth potential.
- Increased Customer Demand: As the AI market expands, Broadcom's hyperscale customers are expected to ramp up chip purchases, reducing infrastructure costs and long-term dependence on Nvidia by installing more custom ASICs, thereby further solidifying their market position.
- Relative Valuation Advantage: Despite the rapid growth of Broadcom's AI chip business, it trades at just 25 times next year's earnings, making it relatively cheap compared to Nvidia's 16 times, attracting long-term investors' attention.
- Diverse Product Portfolio: Broadcom also sells a wide range of non-AI chips and infrastructure software, which, although growing slower, allows the company to bundle products, lock in customers, and expand competitive advantages across multiple markets, enhancing its market moat.
See More
