NVIDIA, the AI Chip Leader, Pushes Development of PC Chips... Intel Stock Falls

American semiconductor company Nvidia, a leader in the artificial intelligence (AI) chip sector, has announced its entry into the production of chips for personal computers (PCs), signaling a potential upheaval in the semiconductor market. As Intel, the dominant player in the existing PC chip market, experiences a decline in its stock price, intense competition between the two companies is expected in the future.

[Image source=Reuters Yonhap News]

On the 23rd (local time), major foreign media outlets reported, citing sources, that Nvidia is developing chips for PCs. According to these sources, the PC chips Nvidia is developing are based on the architecture of the UK semiconductor design company Arm, with a target release date set for 2025.

Immediately after this news was released, the stock prices of Nvidia and Arm rose by 3.84% and 4.89%, respectively, while Intel’s stock price, which dominates the existing PC chip market, fell by 3.06%. Analysts are already suggesting that Intel’s market dominance could be impacted as it faces a new strong competitor in the PC chip market.

Currently, Intel holds more than half of the global PC chip market, followed by AMD in second place. Intel’s PC chips are based on its own x86 architecture. Therefore, Nvidia’s development of PC chips based on Arm architecture could pose a threat to Intel.

There are also concerns that the impact could be greater since PC chips are one of Intel’s main sources of revenue. In the second quarter, out of Intel’s $12.9 billion in sales, the PC chip segment accounted for $6.8 billion, representing more than half of its total revenue.

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