The CPU diagram shows the main components of a computer including the processor, storage, input and output devices, cache, and main memory. The input device sends instructions to the processor to retrieve applications from main memory, which are then displayed on the output device monitor. The cache acts as a buffer to temporarily store applications and processes for faster access. Processors have multiple cores that operate at gigahertz speeds to process instructions. The fetch-execute cycle continuously loops to fetch instructions from storage into memory, decode them, and execute the decoded operations. The arithmetic logic unit performs calculations and logical comparisons on input data from the control unit and outputs results.