Nvidia Challenges Intel's PC Dominance with Arm-Based CPUs

Nvidia, a powerhouse in the realm of artificial intelligence computing chips, is setting its sights on a new frontier – the personal computer market long-dominated by Intel.

In a surprising development, the tech giant has discreetly commenced the design of central processing units (CPUs) intended to run Microsoft's Windows operating system, incorporating technology from Arm Holdings, according to sources familiar with the matter.

This strategic shift aligns with Microsoft's initiative to support chip manufacturers in crafting Arm-based processors for Windows PCs.

In a bid to rival Apple, which has rapidly expanded its market share by introducing its in-house Arm-based chips for Mac computers, Microsoft is flexing its competitive muscle.

In tandem with Nvidia, Advanced Micro Devices (AMD) is also gearing up to produce CPUs featuring Arm technology for personal computers.

As per insiders, these cutting-edge PC chips could potentially hit the market as early as 2025.

Qualcomm, on the other hand, has been manufacturing Arm-based chips for laptops since 2016 and is slated to unveil a flagship chip, engineered by a team of ex-Apple engineers, at an upcoming event attended by Microsoft executives.

Following the Reuters report on Nvidia's ambitious plans, the market responded swiftly.

Nvidia's shares closed up 3.84%, while Intel's shares dipped by 3.06%. Arm Holdings, a central player in this narrative, experienced a 4.89% surge in its share price at close.

Notably, official comments from major players are in short supply, with Nvidia, AMD, Arm, and Microsoft representatives declining to provide any insights into these developments.

However, this collective effort by Nvidia, AMD, and Qualcomm threatens to disrupt the PC industry's status quo, a domain that Intel has long dominated.

Apple's success with custom chips has not gone unnoticed by Microsoft, as they aspire to achieve similar levels of performance, especially in the realm of AI processing.

This shift promises to introduce a new era of competition in the PC chip market and could potentially reshape the industry landscape.

Stephen Nellis and Max A. Cherney / Reuters