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May 28,  2026

Why NVIDIA’s Bold Move Into CPUs Is Bullish for This Income Builder Stock

NVIDIA (NVDA) has become the most valuable business in the world because it is the undisputed leader in Graphic Processing Units (GPUs)—the specialized chips that made the AI revolution possible.

Just a few years ago, GPUs were mainly used for video games. Now they are driving the growth of the entire global economy.

What NVDA realized before anyone else was that the same basic computing architecture that gave the world Grand Theft Auto could also be used to handle the immense data requirements of the most advanced AI models.

That insight transformed NVDA from a niche semiconductor company into a technology juggernaut with a market cap that now exceeds $5 trillion.

GPUs are the brains of modern AI data centers. They process enormous amounts of information simultaneously in ways that traditional computer chips simply cannot match.

So when NVDA announced on its most recent earnings call that it is now aggressively entering the market for Central Processing Units (CPUs)—the traditional chip architecture that GPUs were originally designed to replace—it raised eyebrows across Wall Street.

NVDA’s expansion into CPUs creates a potentially massive new growth avenue for the company itself, beyond its core GPU business.

But it also has major implications for a very different type of business—one that sits underneath the entire AI economy.

As we considered the impact of this important and surprising development across our Model Portfolios, one stock in particular stood out as a direct and potentially significant beneficiary.

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What has changed?

NVDA is not only selling CPUs now—they stated that they have commitments for some $20 billion worth of sales this year.

According to the company, this sets NVDA up to become “the world leading CPU-supplier.” Over the long term, they view CPUs as a $200 billion market opportunity.

As we explained last week in NVIDIA Delivers Durable—and Broadening—Growth, NVDA has strong technological motivations to move in this direction. The CPUs they are designing are not the CPUs of yesterday but are specifically designed as AI-enabled complements to their own suite of GPUs.

On the earnings call, CEO Jensen Huang described the new Vera CPU architecture as a major pillar of the next generation of AI infrastructure.

To be clear, NVDA is not trying to compete head-on with the likes of Intel (INTC) in the legacy PC market. Instead, the company is building highly specialized processors designed specifically to work alongside their own GPUs inside AI factories.

AI agents are driving the shift.

AI is rapidly evolving from basic chatbot interactions into autonomous “agentic AI” systems that are capable of reasoning, coding, planning, and interacting with software in real time.

While GPUs are still doing most of the heavy lifting, CPUs need to keep up.

CPUs are playing an increasingly critical role in many areas, including orchestrating data movement, handling memory operations, and running the surrounding software infrastructure.

As Jensen explained on the call, agentic AI systems, like Anthropic’s Claude Code or OpenAI’s Codex, are essentially a “harness” for an AI model that runs on a CPU. With the number of AI agents potentially scaling into the billions, this creates a vast need for CPUs that perform this function efficiently.

The world has 1 billion users, human users. My sense is that the world is going to have billions of agents. Not today. I mean, we're going to grow into it. But it will have billions of agents and those billions of agents will all use tools. And those tools are going to be like PCs. Just like us humans using PCs today, in the future, you'll have an agent using a PC….So, we're going to need a lot more CPUs, and Vera was designed to be an agentic CPU. - Jensen Huang (5/20/2026)

The market is still digesting the implications of this major strategic shift by NVDA, which will have ripple effects across the entire tech space.

Below, we explain why we believe one stock in particular—a core holding within our Income Builder Model Portfolio—now represents an even more compelling opportunity in light of this important development within AI….

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