Nvidia announced its new CPU at an event in Taipei and Jon, Rachel, and Matt talked about why potential customers may be interested in buying as well as the potential impacts to primary CPU players such as Intel and AMD. The team also talks about Berkshire Hathaway’s homebuilder acquisition before closing with a question regarding passive investing trends. Jon Quast, Matt Frankel, and Rachel Warren discuss: -Nvidia’s new Vera CPU -The potential fallout in the CPU markout -Berkshire Hathaway’s latest acquisition -Passive investing’s impact on the stock market Companies discussed: Nvidia (NVDA), AMD (AMD), Intel (INTC), Qualcomm (QCOM), Berkshire Hathaway (BRK.A)(BRK.B), Taylor Morrison (TMHC) Host: Jon Quast Guests: Matt Frankel, Rachel Warren Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement.We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode.Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Nvidia’s Next Big Growth Lever?

Motley Fool Hidden Gems Investing

# Full Transcript

**Podcast:** Motley Fool Hidden Gems Investing

## Transcript

What is NVIDIA's Next Big Growth Lever? You're listening to Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. My name is John Kloss and I'm joined today by Foolish contributors Rachel Warren and Matt Frankel. And we have a couple of things to talk about on the show today. We're going to talk about passive investing. We're going to talk about a deal in the home builder market. But first, we're going to talk about the bell of the ball,

and that is NVIDIA. NVIDIA over the weekend in Taipei having a conference event where they announced many things as they are want to do. But one of the big announcements coming out from NVIDIA over the weekend was its new Vera CPU. Now, I know full well that NVIDIA is not a hidden company. It's the largest publicly traded company in the world. But the business has boomed with GPUs or these

graphic processing units. This is an announcement for a CPU, a central processing unit. And that's not an area that NVIDIA dominates. Actually, that space is dominated by AMD and Intel. And we'll get to that side of the story here in just a moment. But first, I mean, let's talk about this, Matt. What is NVIDIA's pitch to its customers here on why it should potentially switch to its own CPUs instead of that

of competitors? Yeah. So at a high level, this new chip combines one of NVIDIA's Blackwell GPUs, which you could find in PCs today, with an ARM architecture-based CPU designed by a company called MediaTek, which NVIDIA is partnering on to make this. It's clearly designed to handle AI workloads better than the processors that you see from Intel and AMD, which own over 90% of the market today. NVIDIA claims, for example, it's going to deliver RTX class gaming, which is the high-end

gaming PCs that you've probably seen at Best Buy and things like that, in very thin Windows laptops. It's part of NVIDIA's collaboration with Microsoft. I know it's really tough to keep track of all of NVIDIA's various collaborations going on right now, but it made one with Microsoft to essentially reinvent the PC, and this is part of that. It's designed to be a high-end processor. That's the key word. This isn't, you know, the $400 laptops, designed for avid gamers and professionals who really need the ability to multitask and do complex workloads.

Yeah, I think those are really good points that Matt makes, but I think as well, to follow up on that, you know, NVIDIA is making this pitch with the Vera CPU, really kind of trying to fundamentally change what a CPU is supposed to do in this increasingly agentic era of AI. I mean, one of the things here as well to note is NVIDIA is essentially telling data center clients that their old architecture has become a massive bottleneck. So you think of how powerful GPUs handle the core

thinking of, you know, AI, autonomous agents also need to execute code, search databases, and really manage these...

Nvidia’s Next Big Growth Lever?

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Nvidia’s Next Big Growth Lever?

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.