Intel CEO Unfazed by Competition from Nvidia and Qualcomm in PC CPU Market
During Intel’s third-quarter earnings call, CEO Pat Gelsinger expressed his lack of concern regarding the threat of Nvidia or Qualcomm taking away market share from Intel in the PC central processing unit (CPU) market. Responding to reports that Nvidia is working on building an Arm-based CPU to rival Intel’s offerings, Gelsinger stated that alternative options such as Arm and Windows client alternatives have played insignificant roles in the PC business. Qualcomm has also recently announced its own Intel challenger.
Gelsinger reassured analysts that while Intel takes all competition seriously, the company does not see these alternatives as potentially significant overall. He emphasized that Intel’s momentum is strong and mentioned the upcoming launch of Meteor Lake, a next-generation chip featuring chiplets that make up the CPU, GPU, and other components, allowing for customization and AI operations.
Nvidia’s development of Arm-based CPUs for Windows-based PCs and Qualcomm’s unveiling of its Snapdragon X Elite CPU for Windows PCs come at a time when the global PC market is experiencing a turnaround following years of decline. The pandemic-related demand for PCs has led to hope for the industry’s recovery, with Gartner predicting a potential end to the decline in PC shipments by the end of 2023.
While Intel currently holds a dominant 70% share of the PC market, the success of Qualcomm’s and Nvidia’s chips could present opportunities for the competition. However, Gelsinger remains confident in Intel’s position as the market leader and is not worried about losing that position anytime soon.
The tech industry continues to evolve, and Intel is keeping a close eye on the developments from its competitors. As the PC market shows signs of recovery, the future remains highly competitive for all players involved.
Daniel Howley, the tech editor at Yahoo Finance, contributed to this report.