NVIDIA Forecasts $20B CPU Revenue, Drops China Data Center Outlook
QCOM•NVIDIA removed all China data center compute revenue from its outlook after disclosing a $2.5B quarterly H20 chip shipping loss and multibillion-dollar inventory write-offs. It now targets a $200B total addressable CPU market with its Vera chip and forecasts nearly $20B in CPU revenue as revenue growth slows.
1. China Revenue Exclusion
NVIDIA now excludes all China data center compute revenue from its forward outlook, effectively removing a recurring $2.5B quarterly headwind tied to its H20 chip and previously acknowledged multibillion-dollar inventory write-offs.
2. CPU Pivot and TAM Ambitions
Management has shifted focus to its new Vera CPU, positioning it as a central growth driver within a $200B total addressable market for agentic AI and forecasting nearly $20B in CPU revenue.
3. Impact on Growth Trajectory
While revenue still surged 70.7% year-over-year, this pace marks a significant deceleration from a 121.7% three-year average, increasing reliance on the CPU segment to maintain overall growth.
