Proactive Investors - NVIDIA Corporation (NASDAQ:NVDA) has quietly started designing central processing units, 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 (NASDAQ:ARM), the report said, citing people familiar with the matter.
Nvidia holds a significant share of the artificial intelligence 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 (NASDAQ: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 (NASDAQ:QCOM), 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%.