Nvidia’s Next Big Growth Lever?

NVDA BRK-B INTC In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Jon Quast, Matt Frankel, and Rachel Warren discuss: The potential fallout in the CPU markout. Berkshire Hathaway’s latest acquisition. Passive investing’s impact on the stock market. To catch full episodes of all The Motley Fool s free podcasts, check out our podcast center. When you re ready to invest, check out this top 10 list of stocks to buy. Will AI create the world s first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don t miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. *Stock Advisor returns as of June 6, 2026. This podcast was recorded on June 1, 2026. Jon Quast: 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 Jon Quast, and I m joined today by Foolish contributors, Rachel Warren and Matt Frankel. 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 homebuilder 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 announce many things as they 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, 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? Matt Frankel: At a high level, this new chip combines one of Nvidia’s Blackwell GPUs, which you can find in PCs today with an arm architecture-based CPU designed by a company called Mediatech 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 Nvidia s various collaborations going on right now, but I 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 keyword. This isn t the $400 laptops, designed for avid gamers and professionals who really need the ability to multitask and do complex workloads. Rachel Warren: I think those are really good points that Matt makes. But I think as well to follow up on that Nvidia’s making this pitch with the Vera CP really trying to fundamentally change what a CPO is supposed to do in this increasingly agentic era of AI. One of the things here as well to note is Nvidia s essentially telling data center clients that their old architecture has become a massive bottleneck. You think of how powerful GPUs handle the core thinking of AI, autonomous agents also need to execute code, search databases, and really manage these multistep loops. We re in a time where legacy CPUs, they crumble under that heavy coordination workload, and it leaves these very expensive GPUs waiting around idly. Nvidia is pitching what is essentially a specialized traffic controller that runs these agentic environments almost two times faster than traditional alternatives. I think that s something else that s really important to take away from this announcement. Jon Quast: I want to go a little bit more Hidden Gems here beneath the surface, as we talk about this. B

Nvidia’s Next Big Growth Lever?

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Nvidia’s Next Big Growth Lever?

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