Intel faces strong competition! NVIDIA develops personal computer chips based on ARM architecture.

Wallstreetcn
2023.10.23 21:56
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NVIDIA has started developing personal computer chips based on the ARM architecture for Microsoft's Windows operating system. The chip is expected to be released as early as 2025. This latest move by NVIDIA is part of the joint effort between Microsoft and chip companies to build ARM-based processors for Windows PCs.

On Monday, according to media reports citing insiders, Nvidia has begun developing ARM-based personal computer chips for Microsoft's Windows operating system. The chip is expected to be launched as early as 2025.

Nvidia's latest move is part of Microsoft's efforts to collaborate with chip companies in building Arm-based processors for Windows PCs.

Microsoft's plan is aimed at Apple. Apple's chips have provided longer battery life and faster performance for Mac computers, comparable to chips with higher power consumption. Sources say Microsoft executives have observed the efficiency of Apple's Arm-based chips, including their AI processing capabilities, and hope to achieve similar performance.

According to preliminary data from research firm IDC for the third quarter, Apple's market share has nearly doubled in three years since it released its own Arm-based chips for Mac computers.

Insiders also revealed that AMD is also developing PC chips using the Arm architecture, which will also make its debut as early as 2025.

This year, with the popularity of ChatGPT leading a wave of AI frenzy, Nvidia, the "gold digger" of the AI era, has become the most eye-catching star in the market, with a surge in demand for its GPU chips. Data center operators from around the world are scrambling to stock up on Nvidia's GPU accelerators, which excel at handling the heavy workloads required for AI.

The latest news indicates that Nvidia is quietly developing CPUs for personal computers. This move by Nvidia is bound to challenge Intel's position in this field, which was originally Intel's main battleground. This may intensify the competition between the two semiconductor manufacturers.

Currently, Intel is facing multiple challenges and is striving to regain market share and technological advantage under the leadership of CEO Pat Gelsinger. In the PC chip field, Intel has faced competition from long-time rival AMD, and Qualcomm has also entered this field in recent years, posing a challenge to Intel.

Affected by the above news, Nvidia's stock price expanded its gains during trading, rising as much as 4.5% and closing up 3.8%. Intel's stock price rapidly declined during trading, falling nearly 4.4% at one point and closing down over 3%. ARM, which went public just last month, rose nearly 8.4% during trading and closed up 4.9%.

Currently, Nvidia's market value exceeds $1 trillion, while Intel is only around $140 billion and AMD is around $160 billion.

Monday's rise has reversed Nvidia's downward trend in the previous week. Last Tuesday, Nvidia's stock price plummeted by 7.8% at one point, marking the largest intraday decline since December 2022. According to the official website of the Chinese Ministry of Foreign Affairs, the United States will take measures to prevent U.S. chip manufacturers from evading government restrictions on selling semiconductors to China. Some analysts believe that the new regulations are expected. Although these restrictions may not have a significant impact on NVIDIA in the short term, they may weaken its long-term prospects. Renowned industry analyst Guo Mingchi also agrees with this view, stating that NVIDIA may be negatively affected by the new ban. Guo Mingchi also suggests that Intel may be the big loser. In addition, if AMD's stock price drops significantly due to the new regulations, it may create a short-term buying opportunity, as its main customers are primarily North American CSP/service platform providers.