Key Takeaways
- Nvidia shares gained 1.6% during Wednesday’s premarket session, trading at $177.97
- Arm Holdings unveiled the Arm AGI CPU for data centers, projecting $15B yearly revenue by 2031
- The new Arm CPU doesn’t directly challenge Nvidia’s GPUs — though it could overlap with Nvidia’s newly launched Vera CPU lineup
- Amazon Web Services committed to purchasing 1 million Nvidia GPUs for AI inference workloads, a deal estimated above $50 billion
- Nvidia has restarted H200 chip manufacturing for China and is developing a Groq 3 variant for the Chinese market, representing roughly $32B in annual revenue
Nvidia shares advanced in Wednesday’s early trading hours, maintaining momentum despite Arm Holdings’ entry into the AI chip sector. The development occurred alongside two substantial revenue announcements that had received minimal attention from market observers.
Arm revealed its inaugural data center CPU on Tuesday evening — the Arm AGI CPU — identifying Meta Platforms and OpenAI among its initial clients. During an after-hours investor presentation, Arm outlined aggressive growth targets, forecasting approximately $15 billion in yearly CPU revenue by 2031 as part of its broader $25 billion revenue objective.
Arm shares surged 12% in premarket activity following the disclosure.
However, market analysts were swift to clarify that this new processor doesn’t directly compete with Nvidia’s primary GPU offerings.
Benchmark Research’s Cody Acree noted that Arm’s strategy is “less about catching up to the accelerator wave and more about inserting itself deeper into the architecture that governs how AI infrastructure actually runs.”
Nvidia’s CEO Jensen Huang appeared in Arm’s promotional materials, describing their nearly 20-year collaboration as the foundation for “one seamless platform, from cloud to edge to AI factories.”
The competitive dynamics become more intriguing regarding Nvidia’s standalone Vera CPUs, which debuted at last week’s developer conference. J.P. Morgan’s Harlan Sur highlighted potential overlap between Arm’s processor and that product category. He additionally noted that Meta has already secured an agreement with Nvidia for its Arm-based CPUs — complicating the competitive landscape.
Amazon Commits to Massive Nvidia GPU Purchase
Separately, Amazon Web Services revealed plans to acquire 1 million Nvidia GPUs dedicated to AI inference capabilities. The announcement caught many by surprise — AWS had recently been characterized as hosting “the largest cluster of non-Nvidia chips in the world” following its Indiana facility’s October 2025 launch.
The agreement encompasses a “broad mix” of six additional Nvidia processor variants, including the recently unveiled Groq 3 inference chips, alongside Nvidia networking infrastructure. Industry estimates place the complete package well beyond $50 billion, with completion scheduled for late 2027.
This singular transaction accounts for approximately 25% of Nvidia’s total 2025 annual revenue.
Chinese Market Revenue Resumes
CEO Jensen Huang confirmed last week that Nvidia has resumed H200 chip manufacturing — engineered to meet U.S. export compliance requirements — specifically for Chinese customers. Industry sources also suggest a China-compliant Groq 3 chip variant is under development.
Nvidia had projected zero Chinese data center revenue in its Q1 guidance. Throughout 2025, these sales averaged approximately $8 billion quarterly — translating to roughly $32 billion annually, representing about 15% of total 2025 revenue.
Together, the AWS agreement and China production restart account for more than $82 billion in revenue absent from Nvidia’s current forecasts.
Nvidia shares traded up 1.6% at $177.97 during Wednesday’s premarket session, rebounding from a 0.3% decline in the previous trading day.
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