Axios reported that Microsoft (MSFT) would introduce its first Windows PC powered by NVIDIA (NVDA). That news does not matter. Historically, PCs with CPUs other than an AMD (AMD) or Intel (INTC) did not enjoy strong sales.
Qualcomm (QCOM) powered various Microsoft Surface tablets, while ARM (ARM) did the same before that. Although those chips had lower power performance, they could not take Apple’s (AAPL) market. Apple MacBooks and iPads are popular for their quality and power management features. Apple recently recognized that RAM and GPU prices would hurt overall computer sales. In response, it released an inexpensive MacBook Air, called Neo.
The PC release does not matter for NVIDIA. In the last quarter, the company rolled up PC GPU gaming chip sales in a more obscure line item. Not only would it hide weak growth in that market, but it also indicated that the company no longer cared about the GPU market. That would imply that a PC with an NVIDIA chip would have no impact on the price of NVDA stock.
Architecturally, NVIDIA wants to offer CPUs as well as GPUs. That would give the company better command of the connection between the two chips. Unfortunately, consumers are not likely to want to be a test subject for that shift by buying that type of Windows PC.
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