Nvidia Corporation (NASDAQ: NVDA) is entering the personal computer market with a new chip designed to challenge the dominance of Intel Corp. and modernize machines for the AI era.
The new RTX Spark Superchip will debut in laptops and desktops from Dell Technologies Inc. and Lenovo Group Ltd. starting this fall, CEO Jensen Huang announced at the Computex trade show in Taipei.
The product combines a microprocessor and graphics chip, built with assistance from Taiwan’s MediaTek Inc., and will run Microsoft Corp.’s Windows for Arm operating system.
Intel’s stock fell 4.7% to $109.33 at the close of New York trading, while Nvidia shares gained 6.2%, and Arm Holdings Plc shares jumped 16% on the news.
MediaTek stock also climbed more than 5% in Taipei following Huang’s announcement at the trade show.
Nvidia agreed in September to invest $5 billion into Intel as part of a broader partnership to co-develop chips for PCs and data centers, with shares purchased at $23.28 per share.
The first laptops built with RTX Spark will target the premium segment, with Nvidia saying the chip’s efficiency will allow PC makers to offer powerful machines that remain thin and light.
Nvidia’s sales in its most recent quarter were roughly equal to the combined annual totals of Intel and Advanced Micro Devices Inc. for last year, illustrating the company’s commanding position in the chip industry.
Huang described the Spark as the beginning of a PC market shake-up that may eventually rival the advent of the smartphone, signaling the company’s long-term ambitions in the space.
“The number of customers, the number of partners that are so excited to bring RTX to market is just incredible,” Huang said in Taipei.
The RTX Superchip will feature a central processing unit with up to 20 computing cores and a Blackwell-generation graphics processor with 6,144 cores, with both elements sharing built-in memory for handling large AI models and high-end games.
The chip will use Nvidia’s NVLink interface to allow the two components to communicate, bringing data center technology directly into personal computers.
The chip design will be manufactured by Taiwan Semiconductor Manufacturing Co. using that company’s 3N process technology.
Nvidia said it has worked with Microsoft for years to prepare the new devices and ensure software support, with the goal of making Arm Holdings technology finally take hold in the Windows PC world.
Outside of Apple Inc.’s Mac lineup, most PCs currently use processors made by Intel or AMD, a dynamic Nvidia is directly targeting with the RTX Spark’s launch.
Adobe Inc.’s Photoshop is being reworked to better respond to AI-based prompts for generating image and video content, representing one example of how software is adapting for the new devices.
Nvidia said the new PCs will also be able to run large AI models securely, giving users easily implementable controls over what data and software are accessed by their machines.
The company declined to offer performance comparisons to existing and planned competitor devices, stating that information will be provided when the new machines are ready for sale.
