NVIDIA Corporation (NASDAQ:NVDA) has quietly started designing central processing units (CPUs), in a move that fires a shot across the bow at Intel Corporation (NASDAQ:INTC), according to reporting from Reuters.
The CPUs would run Microsoft Corporation (NASDAQ:MSFT) Windows and use technology developed by Arm Holdings, the report said, citing people familiar with the matter.
Nvidia holds a significant share of the artificial intelligence (AI) chip market. If the company’s CPU ambitions bear fruit, it could take a bite out of personal computing rivals such as Intel.
The move is linked to Microsoft’s larger plan to help semiconductor companies build Arm-based processors for Windows PCs. While Nvidia comes after Intel, Microsoft is chasing Apple Inc (NASDAQ:AAPL), which has released its own Arm-based chips for its Mac computers.
Similarly, Advanced Micro Devices (AMD) also has plans to make Arm-based chips for PCs, according to the report. These Nvidia and AMD chips could hit the market as early as 2025.
Qualcomm, meanwhile, has been making Arm chips since 2016. The company expects to unveil additional details about a new flagship chip at a Tuesday event.
Shares of Nvidia jumped nearly 4% Monday, while Intel stock dropped more than 3%.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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