stock dropped 3% Monday after that and were working on Arm-based PC chips. stock rose nearly 5%, and Nvidia gained nearly 4% during late-day trading Monday.
Intel currently has the majority of the market for PC chips, with AMD coming in second. Sales of PC chips comprised over half of Intel's revenue in the June quarter.
Intel's PC chips are based on the x86 instruction set. Chips that use the Arm-based instruction set, like those for smartphones, often use significantly less power, which is critical for battery-powered devices.
recently its laptop and PC chips from Intel to home-grown Arm processors, which led to and longer battery life for the devices.
Nvidia could release a PC chip based on Arm as soon as 2025, AMD's Arm chip is also in planning, according to the report. These chips would be used in PCs running Microsoft Windows.
Switching software from the x86 instruction set to be compatible with an Arm-based processor can be time-consuming and difficult, but Windows can already easily run on an Arm chip.
Qualcomm has been working on its own , although it has yet to gain significant sales traction. It has a launch event planned for later this week.
Last month, Arm went through an initial public offering, where it that it has long-term agreements with top chipmakers to use its technology in their chips.
Arm, AMD, and Nvidia declined to comment. Intel did not immediately respond to CNBC's request for comment.
Don't miss these CNBC PRO stories:
