Nvidia targets AMD and Intel with server CPU push

Nvidia reported strong second-quarter results for fiscal 2027, with revenue rising 106% year over year to $96.2 billion. Data center revenue increased 117% year over year to $89 billion, driven by demand for GPUs from hyperscalers, AI labs, and neocloud companies.

The company is also expanding beyond GPUs in servers. Management said trailing-twelve-month revenue from Grace CPUs exceeds $5 billion, and Nvidia is now offering its Vera server CPU as a stand-alone product. CFO Colette Kress said Vera is expected to be deployed by every major hyperscaler, neocloud, AI lab, and system OEM, with shipments underway to lead partners including OCI, SpaceXAI, and AWS.

Nvidia said it continues to see demand for approximately $20 billion in total server CPUs, and expects server CPU revenue to more than double in fiscal 2028. AMD reported a 107% year-over-year increase in its data center segment revenue in Q2 to $6.7 billion, while Intel reported a 59% jump in data center and AI revenue in Q2 to $6.3 billion.

Vera is built on Arm Holdings’ v9.2-A architecture, while AMD and Intel rely on x86 designs. Arm-based server CPUs now account for 45% of data center market revenue, and Counterpoint Research expects Arm-based server CPUs to capture 90% of the server CPU market by 2029.