Chip, Nvidia teams up with Arm against Intel
After having dominated the market of graphics cards for video games and chips for artificial intelligence, Nvidia now wants to start producing processors for computers, dethroning Intel. All the details
Nvidia, the world's largest semiconductor company, will use Arm Holdings ' technology to develop microchips comparable to those made by Intel for computers.
Both Nvidia and Intel are headquartered in Santa Clara, California; Arm, on the other hand, is British.
NVIDIA'S PLAN
Nvidia specializes in chips for artificial intelligence (it is the dominant company in this market segment), but now seems intent on expanding into the computer processor branch. In fact, according to information obtained by Bloomberg , Nvidia wants to produce processors compatible with Microsoft's extremely popular Windows operating system, to be put on sale as early as 2025. These processors are called CPUs, or central processing units, in jargon.
AMD ALSO GOES TO ATTACK INTEL
Intel's market share, in reality, is under attack not only by Nvidia, but also by Advanced Micro Devices (AMD), which is also working on the development of computer processors based on Arm technology, to be sold by 2025.
AMD has now shaken off the reputation of being a low-cost competitor of Intel and has developed a series of products that have allowed it to conquer important spaces on the market.
THE CONSEQUENCES ON THE STOCK MARKET
This news roiled the markets and caused Intel shares to drop 3.1 percent on Monday. Arm's shares gained 4.9 percent, and Nvidia's 3.8 percent.
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However, it is not the first time that a company has tried to use Arm's technology – very widespread on smartphones – also for processors intended for computers, and to date these attempts have not had major repercussions on Intel. Nvidia itself had tried to enter the PC chip market a decade ago, under the leadership of Rene Haas, currently CEO of Arm.
Windows RT, a version of Microsoft's Windows 8 operating system released in 2012, was designed for devices based on Arm architectures. Products in the Microsoft Surface line (mainly laptops and tablets) used Windows RT and Nvidia's Tegra chips for example, but they did not catch on widely among consumers.
NVIDIA, A “FORMIDABLE RIVAL” FOR INTEL
However, as Bloomberg points out, Nvidia has launched its challenge at a delicate moment for Intel, which is engaged in a phase of restructuring its business model : it no longer wants to be just a chip developer, but also a manufacturer for third parties.
Furthermore, Nvidia is a "formidable rival", writes Bloomberg : it is the chipmaker company with the highest market capitalization (over one trillion dollars), which has already exploited its dominance of graphics cards for video games to develop semiconductors capable of powering artificial intelligence systems , which require high computing capabilities.
While Nvidia has exceeded the threshold of one trillion dollars in market capitalization in recent months, Intel's valuation has fallen in recent years and today stands at around 142 billion.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/nvidia-arm-processori-computer-intel/ on Tue, 24 Oct 2023 14:10:35 +0000.