Key insights
- Nvidia's unveiling of new PC chips (RTX Spark, N1X) at Computex signals a significant expansion into the personal computer market, a new frontier beyond its data center and AI dominance. This move, in partnership with MediaTek, could unlock substantial new revenue streams and support the stock's growth narrative, especially given Nvidia's financial resources and prior experience. The announcement has already boosted NVDA pre-market, indicating positive investor sentiment towards this diversification strategy.
Nvidia (NVDA) debuted its RTX Spark and N1X chips at Computex Taipei 2026 over the weekend.
Morning Brief Host Julie Hyman, Yahoo Finance Breaking News Reporter Jake Conley, and Barron's Investor Circle Newsletter editor Josh Schafer dive into the details and examine the new businesses that the chipmaker is trying to get into with its latest products.
This is the most amazing chip the world has ever built. This was the N1X that we built in partnership with MediaTek. I think I saw, I saw Rick earlier. This is N1X. This is a beautiful chip. And this is this is a a chip that, frankly, would take 33 years to build.
They rolled out a lot of new products there in Taipei and the Spark is the one um that perhaps is getting the most attention because it is a PC chip. And it's not necessarily a surprise. I was emailing with Patrick Moorhead this morning um over at more insights who covers the industry very closely. Um and he said, I'm not surprised, but he said, um the play is simple. They're already in data center, robotics, industrial edge, car and gaming, high-end PCs. That's the next frontier.
Why not get into this?
Yeah, exactly. Right.
This announcement, okay, they're getting into a whole new business. I'm not sure I even understood the fact that there are this many other businesses that Nvidia can keep getting into. I mean you think about sort of the bull case for the stock moving forward, the question has continuously been, okay, so much growth is priced in. Where do you get more growth from? This seems to be a big driver. I mean stock was up two and a half percent pre-market the last time I looked, it seems like a real new potential top line for them.
They also have tried this game before. They tried to get into personal computer processing chips several years ago, kind of fizzled out, they moved into AI, they did everything else. Now they're coming back with some real firepower behind them, right? They've got more money than anybody else playing in this game. Great stat from Bloomberg. Nvidia's sales in the most recent quarter roughly equal to Intel and AMD's annual totals for all of last year.
Yeah.
So it shows you they can now come in and say, this is our game now and here's our growth. Here's where we're going to keep finding that new business that we have to find to keep exciting people and getting them to buy the stock.
And and here's what's interesting also that Pat Moorehead said. He said, I don't think Nvidia will gain significant unit market share, but if they can provide an incredible alternative to the highest end Macs for developers, they can then move down the stack and start to take some share. So it's not that this is going to be, you know, a huge driver for them, but kind of like to your point on the margins here, just these new markets they keep getting into and and and keep growing. And if they can own a piece of every part of it, they can dominate in some parts and then own a piece of every part of it. But also, when you talk about the comparison to Intel and AMD, Intel and AMD are down this morning. And I also immediately thought of Qualcomm because Qualcomm has sort of tried to position itself itself as the chip for computing at the edge is what it on device is what um is how, you know, whereas Nvidia sort of owns the data center, Qualcomm has tried to, you know, in your phone, on your computer, and so this is also a threat to them. So Intel, AMD, Qualcomm, all those stocks are down this morning as Nvidia kind of gets into this market.