Challenging Intel Nvidia is coming with Arm-Based Processors For PCs. Nvidia Corp. is using Arm-based CPU’s to develop chips that would be Intel’s competition in personal computers. This is ratcheting up competition between the two semiconductor makers, according to people familiar with the situation.
Nvidia, whose artificial intelligence accelerator chips already dominate that market, is attempting to make central processors for PCs, said the people, on basis of anonymity as the matter is still private. The NVidia processors would run Microsoft Corp.’s Windows operating system and go on sale as soon as 2025.
Arm-based CPUs
Main Intel competition in PCs, Advanced Micro Devices Inc., is now also working on Arm-based CPUs, as per resources. AMD currently licenses Intel’s technology.
The news of new Nvidia processors jarred investors, sending Intel shares down 3.1% on Monday, though it’s not the first attempt to use Arm-based CPUs to crack the PC processor industry. A number of companies have made a run at traditional PC processors over the years with little impact. Nvidia itself made a previous go at the market under former executive Rene Haas, who now runs Arm, more than a decade ago.
Windows RT, which Microsoft announced at the CES show in 2011, was designed to run on Arm designs. The first of Microsoft’s Surface devices was based on that operating system and used an Nvidia Tegra chip. But those early models didn’t catch on with consumers.
Apple’s in-house designs
Apple Inc., though, has provided a more recent model for how to replace Intel technology. The company switched from using Intel processors in its Mac computers with in-house designs that are based on Arm’s standards. And it has credited the change with boosting Mac sales. Qualcomm Inc., the biggest maker of phone chips, is currently the only other maker of Arm-based chips for Windows PC technology.
Nvidia processors a big Intel competition
Intel competition will increase with this. The move would attack Intel’s home turf at a difficult time for the pioneer of PC processors. Under CEO, Pat Gelsinger, Intel has been fighting to regain market share and its technological edge. The addition of Nvidia and AMD to a field that includes Apple and Qualcomm only adds to its challenges.
Valuable chip maker
Nvidia the world’s most valuable chipmaker, with a market capitalization of about $1.1 trillion is an increasingly formidable rival. The company used its dominance in graphics cards for video games to develop chips that can power AI computing. That’s led to an explosion in orders as tech companies around the world adopt artificial intelligence tools and need more processing power to run them. Nvidia was the first chipmaker to pass a $1 trillion valuation earlier this year.
AMD custom based products
AMD. Under CEO Lisa Su, the company has shed its longtime reputation as a low-budget competitor to Intel and delivered several generations of products that have won market share. AMD had previously said it would consider Arm-based products but shelved that effort. More recently, Su has said that the company would produce custom products with combinations of technology, including Arm, if asked by customers.
Intel, in contrast, has seen its valuation slide in recent years. Even with a rally in 2023, the company currently stands at about $142 billion.
As per sources, like Nvidia’s processors chips, Arm’s Arm-based PCUs could go on sale as early as 2025. Representatives of AMD, Arm and Nvidia declined to comment.
Stock update
Earlier Nvidia’s effort, which sent shares of Arm up 4.9% in New York. Nvidia gained 3.8%.
