This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) shares climbed about 4% on Monday after the chipmaker said it is moving deeper into the personal-computer market with a new product called RTX Spark.
The launch, unveiled at Computex in Taipei, pushed shares of rival PC chip makers lower. Advanced Micro Devices (NASDAQ:AMD) fell about 3%, Intel (NASDAQ:INTC) dropped about 4%, and Qualcomm (NASDAQ:QCOM) slid about 6% as investors weighed the competitive threat from Nvidia.
Nvidia said RTX Spark is designed for AI, gaming and content creation, and targets slim Windows laptops and desktop systems with longer battery life and higher efficiency. The move marks a shift for Nvidia, which has mostly competed in PCs through graphics cards rather than full system-level chips.
For years, Nvidia relied on AMD and Intel for central processing units, or CPUs, in systems using its GeForce RTX graphics line. Nvidia is now positioning itself as a more direct rival to those companies, while also making Qualcomm’s push into PCs more complicated. Analysts said the market reaction suggests investors are already pricing in a tougher fight across the PC chip segment.