Nvidia and Microsoft unveil RTX Spark Windows AI chip, lifting Arm while pressuring Intel

Nvidia CEO Declares AI PC Reinvention A "New Beginning" On Par With Smartphone Shift Nvidia CEO Jensen Huang delivered the keynote address on Monday at GTC Taipei 2026, outlining the next evolution of AI compute. Huang's presentation included updates on the Vera Rubin platform, a new lineup of Windows PCs developed with Microsoft for AI workflows, the launch of an enterprise agent toolkit, and next-generation AI infrastructure systems to accelerate data-center and agentic AI adoption. A team of Goldman analysts, led by James Schneider, attended GTC Taipei 2026 and shared the top takeaways with clients. Schneider had three key investment takeaways: First, Nvidia (with Microsoft) is pursuing its traditional PC TAM more aggressively, which we believe could help drive some momentum for Windows on ARM (which has been extremely slow to date) given a concerted push with software partners. Second, Nvidia continues to push its advantage in datacenter-level performance and cost leadership as a key differentiator relative to competitors - which we think should allow it to maintain competitive dominance at all but the largest hyperscalers. Third, Nvidia is aggressively investing to drive the adoption of agentic AI across developers and ecosystem partners, and its Vera Rubin revenue ramp remains on track. Here's more color on those takeaways: Vera Rubin update: Nvidia announced that it is now ramping full production of its Vera Rubin platform, with multiple rack-scale systems (NVL72 GPUs, Vera CPUs, Groq 3 LPUs, BlueField storage, Spectrum-X networking) contributing to AI factory designs. The company highlighted that Vera GPUs are purpose-built for agentic AI use cases, with up to 1.8X the performance of X86 systems and 10X agent throughput vs. Blackwell. We expect a materially steeper revenue ramp for Rubin (beginning in 3Q) relative to Blackwell given meaningful manufacturing efficiencies and greater total capacity. In addition, the company highlighted its DSX AI Factory reference platform, which helps customers optimize their AI datacenters to bring operations up faster, while optimzing power consumption and system uptime. New lineup of Windows PCs with Microsoft targeting AI workflows: Nvidia, in collaboration with Microsoft and Mediatek, launched a new Windows-based PC platform targeting AI workflows. The RTX Spark product combines a Blackwell RTX GPU with a 20-core Grace GPU (co-designed with Mediatek) using NVLink to deliver a high-performance PC experience optimized for AI applications - which we expect to be targeted at the premium segment of the market. OEM partners will launch laptop, desktop, and workstations systems beginning this fall, with launch partners including ASUS, Dell, HP, Lenovo, Microsoft, MSI, Acer and Gigabyte. Launch of Enterprise Agent Toolkit. Nvidia announced a series of new software releases targeting agentic AI use cases in the enterprise, including NemoClaw, Nemotron 3 Ultra, OpenShell, and CUDA-X Agent Skills. Physical AI announcements: Nvidia launched new versions of its open Cosmos (v3) frontier model targeting multi-modal reasoning, and Alpamayo (v2) which is targeted as a reference platform for self-driving cars. The company also announced its first open reference design for humanoid robots, based on its Isaac Gr00t and Jetson Thor hardware platform. "The PC is being reinvented," Huang said. "For forty years, you launched apps. Click. Type. With RTX Spark and Microsoft Windows, you ask — and the PC does the work. RTX Spark brings everything NVIDIA has built — CUDA, RTX, our AI platform — into a single superchip. Local agents. Frontier models. Creative workflows. RTX games. All on a laptop. This is the new PC. The personal AI computer." Jensen Huang says the AI PC reinvention is as big as the smartphone shift by calling it “a new line” and “a new beginning.”$NVDA and $MSFT unveiled RTX Spark which will be the world’s most powerful deskside AI supercomputer built to run next-gen AI agent workloads locally. https://t.co/aUTBmJ3a5G pic.twitter.com/oz21vosT5S — Shay Boloor (@StockSavvyShay) June 1, 2026 Nvidia shares rose 2.5% in premarket trading in New York after Huang's comments outlined that the company was entering the PC market with a new chip. Arm ADRs soared 12% as traders viewed Nvidia's PC push as supportive of the Arm ecosystem. However, the announcement pressured incumbent processor stocks, with Intel sliding 6%, Qualcomm down 9.5%, and AMD falling 3.5%. Schneider is "Buy" rated on NVDA with a 12-month price target of $285. This is based on a 30X P/E multiple applied to his team's normalized EPS estimate of $9.50.  Meanwhile, overnight, Intel announced a new AI chip, code-named Crescent Island, expected to hit the consumer market by the end of the year, according to the Financial Times. "We decided to start rebuilding our muscles in AI . . . [but] we are not particularly aiming for [the training market] based on past experience," said Kevork Kechichian, who leads Intel's data center group. The AI chip race is accelerating, with today's biggest news being Nvidia's move to reinvent the PC market with a new AI chip. Tyler Durden Mon, 06/01/2026 - 08:55

Shares in Arm Holdings are soaring today after Nvidia CEO Jensen Huang announced a fresh foray into the personal computer market with a new AI chip designed to power Windows PCs later this year. Here’s what you need to know. Nvidia announces RTX Spark superchip and N1X processor Nvidia has never been a stranger to the personal computer market, despite now being best known as the maker of chips that power AI servers. Its enterprise AI chips and associated products are what have driven Nvidia to become the most valuable publicly traded company ever in the last several years. But before the AI boom, a large majority of Nvidia’s business came from making graphic processing units (GPUs) for personal computers, especially PCs designed for gaming, which required processors that could render advanced graphics. Today, Huang announced that, in addition to its enterprise AI business, Nvidia will launch a new AI chip for personal computers, designed for Windows laptops and desktops. The chip is called the “RTX Spark” superchip. It’s a “superchip” because it is composed of a new AI-focused N1X processor, designed by both Nvidia and Microsoft, and a Nvidia Blackwell graphics processing unit. The chip is based on Arm Holdings’ architecture instead of the x86 architecture found in traditional Intel PC chips. In consumer devices, Arm’s architecture is generally superior for running AI tasks on-device compared to x86-based chips. As a result, devices such as laptops and smartphones with Arm-based chips should be better able to perform AI tasks locally rather than relying on cloud-based AI processing.  The new RTX Spark chip will be made by Taiwan Semiconductor Manufacturing Company (TSMC). As noted by CNBC, announcing the new chip at Taiwan’s Computex conference on Monday, Huang said that “Microsoft and Nvidia are going to reinvent the PC. This is the first completely re-engineered, reinvented line of PCs that has happened in 40 years.” ARM shares surge, while Intel and AMD drop After Huang’s announcement, the share prices of several related companies rose, while competitors dropped. The biggest winner, of course, was Arm Holdings (Nasdaq: ARM). As of the time of this writing ARM stock is currently up more than 15% to $407.58 in premarket trading.  Though Arm won’t actually be making these new RTX Spark superchips, the chips are based on its architecture. This means that for every RTX Spark chip made, ARM will be paid a royalty for the IP used in the chip. Until recently, nearly all of Arm’s profits came from licensing fees it charged to chipmakers for using its blueprints. But that business model changed in March, when Arm announced for the first time in its history that it would begin making its own AI chips, putting it in competition with its customers. But Arm’s own AI chips aren’t related to the new RTX Spark superchip announced today. In addition to ARM stock, shares in Microsoft Corporation (Nasdaq: MSFT) and Nvidia Corporation (Nasdaq: NVDA) are both up modestly on the news, with MSFT shares up almost 4% in premarket as of the time of this writing, and NVDA shares up a little more than 2%. However, other chipmaker stocks are down on news of Nvidia’s new RTX Spark superchip. Affected companies include Intel Corporation (Nasdaq: INTC) and Advanced Micro Devices, Inc. (Nasdaq: AMD). Both make chips for Windows personal computers. Currently, INTC shares are down about 6.2% in premarket trading, and AMD shares are down about 4.1%. Do consumers want AI PCs? Yet despite Arm, Microsoft, and Nvidia getting a boost on the news of the new AI chip coming to personal computers, there is one big question that remains: Will consumers care? While the tech industry has been singing the praises of AI for years now, there is a growing backlash to artificial intelligence in general. And according to PC makers themselves, consumers seeking out new computers don’t seem to care much about those computers’ AI capabilities. Back in early January, personal computer giant Dell essentially spoke the quiet part out loud when the company’s head of product, Kevin Terwilliger, conceded at CES 2026 that customers didn’t seem to be buying PCs based on their AI capabilities. “We’re very focused on delivering upon the AI capabilities of a device . . . but what we’ve learned over the course of this year, especially from a consumer perspective, is they’re not buying based on AI,” PCGamer quoted Terwilliger as saying. “In fact I think AI probably confuses them more than it helps them understand a specific outcome.” Another major player in the PC space, Intel, admitted something similar. As Fast Company reported in late January, at CES, Intel’s vice president of its PC client segment, David Feng, admitted, “There’s this disconnect between people in the industry who are looking a couple generations or a couple years ahead, versus the general public.” When Intel asked retailers if consumers were seeking out AI PC’s, the answer was usually no. Instead, consumers looking for a laptop typically care about two main things: price and battery life. And that first point doesn’t bode well for the first RTX Spark-powered PC that are set to ship this fall. As CNBC reported, the first PC to carry the new chips will also carry “a premium price tag” before the chips trickle down into cheaper laptop models at some point in the future. Yet even when they do that, it remains to be seen how big a factor chips designed for AI tasks will be in the purchasing decisions of computer buyers.