Nvidia to challenge Microsoft with Arm-based PC chips: Reuters

The news: Nvidia is using Arm Holdings technology to develop central processing units (CPUs) to challenge PC stalwart Intel, as competition for semiconductor supremacy intensifies, Reuters reported, citing unnamed sources. Nvidia's artificial intelligence chips and graphics processors already dominate their markets, but the new CPUs would be designed to run the Windows operating system. AMD is also reportedly working on Arm-based processors.

The numbers: Intel shares fell 3.1% on Monday in New York, while Arm and Nvidia gained 4.9% and 3.8% respectively following the Reuters report.

The context: Arm technology is commonly used in smartphones, and it is not the first time competitors have tried to use it to muscle-in on Intel's PC dominance. Apple has nearly doubled its market share in three years since developing its own Arm-based chips for its Mac computers, after using Intel processors for 15 years.