On Aug. 26, Nvidia CEO Jensen Huang Will Provide an Update on Nvidia's $1 Trillion GPU Opportunity. But There's a Smaller Part of the Business Investors Shouldn't Overlook

Investors are gearing up for Nvidia's (NASDAQ: NVDA) fiscal 2027 second-quarter earnings, which volition beryllium released aft the marketplace closes connected Aug. 26.

Nvidia is astatine the halfway of the artificial quality (AI) trade, which is itself astatine the halfway of the broader marketplace close now. So each investors volition beryllium astatine slightest somewhat funny successful however the institution performs and what CEO Jensen Huang has to accidental astir wide demand.

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Nvidia-specific investors volition apt absorption intimately connected what Huang has to accidental astir his erstwhile projection that the institution volition make $1 trillion successful income from its Blackwell and Vera Rubin graphics processing units (GPUs) betwixt 2025 and calendar twelvemonth 2027.

While it's a monolithic number, determination is different emerging portion of the concern that investors shouldn't overlook.

Nvidia becomes much prevalent successful agentic AI

While Nvidia doesn't interruption retired its gross by circumstantial spot model, each GPU gross falls wrong the company's information halfway division, which present makes up the bulk of Nvidia's revenue.

Nvidia's fiscal twelvemonth begins successful precocious January oregon sometimes aboriginal February, truthful it is reasonably adjacent to the calendar year. In fiscal 2026, astir of which occurs successful calendar twelvemonth 2025, Nvidia's information halfway part generated astir $194 cardinal successful revenue.

According to Visible Alpha, Wall Street statement estimates expect information halfway gross to beryllium astir $368 cardinal successful fiscal 2027 and astir $531 cardinal successful fiscal 2028.

Adding up each 3 years comes to astir $1.09 trillion, truthful heading into the upcoming report, investors volition beryllium razor-focused connected whether fiscal 2027 and fiscal 2028 information halfway gross projections summation oregon decrease.

While the absorption volition and should beryllium connected the GPU business, investors should not place Nvidia's cardinal processing portion (CPU) business, which is reasonably new. CPUs, which powerfulness older user electronics specified arsenic phones and laptops, person seen a large resurgence owed to agentic artificial intelligence.

AI agents are utilized to execute autonomous tasks with minimal quality interaction. While GPUs proceed to powerfulness the reasoning, CPUs are present viewed arsenic captious for really performing the task, whether it's readying however to transportation it retired oregon accessing outer files oregon information sources.

Last quarter, Nvidia launched its Vera CPU, specifically built for agentic AI. On the company's net call, Huang said this opens up a $200 cardinal full addressable marketplace (TAM), and Nvidia expects astir $20 cardinal successful CPU gross this twelvemonth alone, instantly making it 1 of the largest, if not the largest, CPU players.