Nvidia to challenge Intel with arm-based processors for PCs

Nvidia Corp. is using Arm Holdings Plc technology to develop chips that would challenge Intel Corp. processors in personal computers, potentially 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 quietly working on central processing units for PCs, said the people, who asked not to be identified because the matter is private.

The CPUs would run Microsoft Corp.’s Windows operating system and go on sale as soon as 2025.

Reuters previously reported on the effort, which sent shares of Arm up as much as 8.4% in New York. Intel dropped 4.4%, while Nvidia gained as much as 4.5%.

The move would attack Intel’s home turf at a difficult time for the pioneer of PC processors.

Under Chief Executive Officer Pat Gelsinger, Intel has been fighting to regain market share and its technological edge.

It already faces competition in PC chips from longtime rival Advanced Micro Devices Inc., as well as Qualcomm Inc., which has expanded from phone chips to laptop processors.

AMD is also developing PC chips with Arm technology, according to the people. They also would debut as early as 2025.

Nvidia, the world’s most valuable chipmaker, 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’s market value passed $1 trillion earlier this year, marking the first time a chipmaker has crossed that threshold.

Intel, in contrast, has seen its valuation slide in recent years. Even with a rally in 2023, the company currently stands at about $141 billion.