The rise of agentic AI has increased the strategic importance of CPUs in the AI hardware market.

NVIDIA has recently secured supply deals with optical component companies like Coherent and Lumentum to address potential bottlenecks.

NVIDIA has pivoted its corporate narrative to focus more on the CPU market in response to the growing trend of agentic AI.

NVIDIA recently reclassified its data center revenues, breaking them down between hyperscalers and non-hyperscalers.

Frank Lee believes NVIDIA needs to demonstrate continued growth in its non-hyperscaler customer segment to achieve a significant stock re-rating.

NVIDIA's revenue from non-hyperscaler customers now represents almost a 50/50 split with its hyperscaler business.

Frank Lee believes that for NVIDIA, strong earnings beats and a robust AI GPU roadmap are no longer sufficient to significantly move the stock price.