CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
According to Reuters, NVDA intends to begin designing CPUs for PCs on ARM-based architecture as early as CY 2025 (AMD also plans to do the same). We would note the market is currently dominated by INTC and AMD’s x86 chips, while QCOM has been developing ARM-based CPUs for years now. Windows has lost considerable share since Apple’s decision to start designing ARM-based CPUs for Macs, and Microsoft could be luring others to develop CPUs (exclusive QCOM ARM contract expires in 2025) to reduce its high emphasis on Intel. We think the news is a positive for NVDA as it further expands the company’s addressable market and adds further fuel to its CPU initiatives (recently launched Grace CPU in data centers). We highlight that developing an all-encompassing CPU for the enterprise space is no easy task, but we think NVDA has the potential to be successful and can take incremental share from 2025 to 2030. PCs focused specifically on the gaming space could be a potential opportunity for a NVDA-designed ARM-based CPU.