Nebius, Arm, Dell: Nvidia's new PC chip announcement sparked a tech rally

Quotes of companies in the technology sector jumped after the head of Nvidia Jensen Huang presented plans to release its first chip for personal computers. Investors rushed to buy the securities of players related to this market, CNBC reports.

Not only shares of Dell and Lenovo, which, according to Huang, are expected to release computers on new processors in the fall, but also securities of IBM and HP. Quotes of Dell soared by 9.4%, IBM - by 8.7%, HP - by 5.8%.

Nvidia's presentation also supported software makers: shares of software developers rose as Huang dismissed fears that the industry is in danger of being undermined by the development of AI tools, Bloomberg explains. Arguing the need for a new chip for PCs, the CEO said that AI agents - autonomous programs that use a central processing unit for their work - are replacing the simple correspondence between a user and a chatbot. And they will need "more tools than ever before". "It's just that the software has to be presented to the agent in a form that it can use," Huang added.

ServiceNow shares rose 8%. A basket of European software developers, compiled by UBS Group, rose by almost 5%, Bloomberg writes.

Shares of neocloud Nebius, which gives customers access to computing power on Nvidia chips, rose 16.2 percent.

Chipmaker Arm added almost 16% in value - a new processor Nvidia is developing on its architecture. Quotes of Microsoft, which also acts as a partner in this project, grew by 2.3%.

But Intel and AMD, whose businesses are directly threatened by Nvidia's entry into the PC market, fell in price by 3.6% and 2.2% respectively.

Speaking at Taiwan's Computex conference on June 1, Huang unveiled the RTX Spark Superchip processor, which combines Nvidia's Blackwell graphics unit and Taiwanese MediaTek's N1X CPU. According to the head of the chipmaker, the new product will lead to "a reinvention of the computer... as massive as the transformation of the phone into what we now know as a smartphone."

Nvidia said it has been working with Microsoft for years to prepare new devices and provide software support that will allow Arm Holdings' technology to finally gain a foothold in the world of Windows-based PCs, Bloomberg notes. Microsoft and Qualcomm have been jointly promoting similar PCs for more than a year, but so far it hasn't yielded significant results. Barring Apple's Mac lineup, most personal computers use processors made by Intel or AMD, the agency recalls. Xi's advantage over these traditional market leaders is much higher power efficiency, but so far the company has lagged behind in software compatibility.

This article was AI-translated and verified by a human editor