According to sources quoted by the media, Nvidia has started designing a central processing unit (CPU) based on the Arm architecture, which will pose a significant challenge to Intel.
Affected by this, the US stock market closed on Monday, with NVIDIA up nearly 4% and Intel down 3%.
According to insiders, NVIDIA has quietly started designing CPUs that run Microsoft's Windows operating system and adopted ARM's technology. It is reported that AMD also plans to produce CPUs based on Arm architecture.
The PC chip market has long been dominated by x86 architecture, which is owned by Intel but also licensed to AMD for use.
Microsoft hopes that chip companies will build ARM based processors for Windows personal computers (PCs), which is closely related to Apple.
According to International Data Corporation (IDC), Apple's market share has almost doubled in three years since the launch of its independently developed Arm chip for its Mac.
A source said that Microsoft executives have noticed the efficiency of Apple's ARM based chips, including artificial intelligence processing, and hope to achieve similar performance.
Insiders have revealed that NVIDIA and AMD may start selling PC chips as early as 2025, joining Qualcomm, which has been producing ARM based chips for laptops since 2016.
According to insiders, Qualcomm will announce more details of a flagship chip designed by a team of former Apple engineers on Tuesday local time. Microsoft's Vice President for Windows and Devices, Pavan Davuluri, and other executives will be present.
In 2016, Microsoft commissioned Qualcomm to take the lead in migrating the Windows operating system to ARM's underlying processor architecture. According to insiders, Microsoft and Qualcomm reached an exclusive agreement to develop chips compatible with Windows by 2024.
Sources say that Microsoft encourages other companies to enter the market after the expiration of exclusive agreements.
The Arm architecture is known for its energy efficiency and holds over 90% of the global market share in the field of smartphone chips.
Jay Goldberg, CEO of D2D Advisory, a financial and strategic consulting firm, said, "Microsoft learned a lesson from the 1990s. They no longer want to rely on Intel or a single supplier. If the Arm architecture really succeeds in the PC chip field, they will never let Qualcomm become the only supplier