NVIDIA Corp (NVDA)

[rolvram]

CFRA MAINTAINS BUY RECOMMENDATION ON SHARES OF NVIDIA CORP.
Mentioned: NVDA
According to Reuters, NVDA intends to begin designing CPUs for PCs on ARM-basedarchitecture as early as CY 2025 (AMD also plans to do the same). We would notethe market is currently dominated by INTC and AMD's x86 chips, while QCOM hasbeen developing ARM-based CPUs for years now. Windows has lost considerableshare since Apple's decision to start designing ARM-based CPUs for Macs, andMicrosoft could be luring others to develop CPUs (exclusive QCOM ARM contractexpires in 2025) to reduce its high emphasis on Intel. We think the news is apositive for NVDA as it further expands the company's addressable market andadds further fuel to its CPU initiatives (recently launched Grace CPU in datacenters). We highlight that developing an all-encompassing CPU for theenterprise space is no easy task, but we think NVDA has the potential to besuccessful and can take incremental share from 2025 to 2030. PCs focusedspecifically on the gaming space could be a potential opportunity for aNVDA-designed ARM-based CPU.