Nvidia and Microsoft shake up the laptop market:
It seems something big is brewing in the world of personal computers,
Remember what Nvidia CEO Jensen Huang said last week? π
''A secret product launching soon'' π
Earlier this week, Nvidia unveiled N1 and N1X, new PC chips based on ARM architecture and developed in collaboration with MediaTek. π
Nvidia is trying to bring to the Windows world something reminiscent of what Apple did with its M chips, meaning more powerful computers β more power-efficient, with better battery life, and the ability to run local AI tasks on the computer itself. β¨οΈ
- These chips are not intended for regular laptops with improved performance β but rather for an attempt to build infrastructure for what could be called an "AI laptop". π±
- Meaning a computer adapted for a world where AI agents work directly from your laptop β opening files, running operations, writing code, analyzing information, creating content, and performing complex tasks completely autonomously. π€
And here we come to the question of all questions:
Who will count the billions and who will take a fatal blow? π€
Nvidia ($NVDA): This is an entry into a new and significant market within the personal computer world, so if this move succeeds, the company will not only be a supplier of a powerful graphics component within the computer, but a player holding a broader part of the platform itself β and this could open up an additional revenue stream beyond data centers, gaming, and AI chips. π΅
Microsoft ($MSFT): Is deeply on the winning side; Windows computers based on ARM architecture have not yet managed to significantly break into the market and have been a source of disappointment. π
If Nvidia brings a strong enough product β this will be the most significant attempt to close the gap with competitors. π΅
ARM ($ARM): The company will cut a particularly fat coupon, because any shift of the computer market from x86 towards ARM directly strengthens its business royalty model (explaining the unusual increases in the company's market cap recently...). π
Intel ($INTC) and AMD ($AMD): On the other side stand Intel and AMD; if this move succeeds β these companies are likely to find themselves in serious trouble. π€
Nvidia is entering with both feet precisely into the area that has been their home fortress for decades β the central processor of the personal computer. π¨βπ»
If the personal computer market starts to move towards ARM, and Nvidia presents strong enough performance β this could exert direct and aggressive pressure on both of them. β
We are monitoring π