The Reuters News Agency is reporting that Nvidia (NVDA) plans to begin making microchips for personal computers, a move that is seen as a direct challenge to rival Intel (INTC).
Nvidia already dominates the market for microchips and semiconductors that are used in artificial intelligence (A.I.) and video games.
Now, Nvidia has begun designing central processing units (CPUs) that would run Microsoft’s (MSFT) Windows operating system.
Nvidia is moving into the market for personal computer chips in collaboration with British chipmaker Arm Holdings (ARM), according to the Reuters report.
Another chipmaker, Advanced Micro Devices (AMD), has said that it too plans to start making chips for personal computers using Arm technology.
Nvidia and AMD could begin selling personal computer chips as soon as 2025. This is seen as bad news for Intel, which has dominated the market for personal computer chips up to this point.
Nvidia shares rose nearly 4% on news that it is developing personal computer chips, while Intel’s stock fell 3%. Arm's share price gained 5%.
The market for personal computer chips was already being disrupted by Apple (AAPL), which began making its own custom chips for its Mac computers a few years ago, giving the devices better battery life and faster processing speeds.
Intel has been scrambling to develop more advanced microchips, adding A.I. features to its chips and demonstrating a laptop running features similar to ChatGPT directly on the device.
Nvidia’s stock has increased 200% year-to-date and currently trades at $429.75 U.S. per share.
