Is Intel's Reign In Jeopardy? ARM-Based Challengers Threaten Chip Giant's Legacy

Intel Corp INTC is facing a crucial struggle for survival amid fierce competition in the semiconductor industry. 

The once-dominant company now confronts challenges from various rivals, including Qualcomm Inc QCOM, Nvidia Corp NVDA, Advanced Micro Devices, Inc AMD, Amlogic, and MediaTek, endangering the iconic "Intel Inside" brand on PCs. 

This shift results from decades of ARM Holdings Plc's ARM growth in the mobile processor market, which Intel failed to penetrate effectively, the Wall Street Journal reports.

Also Read: AMD To Surpass $2B GPU Revenue Target in 2024 - Analyst

Apple Inc AAPL pioneered ARM-based processors in desktop computers, gaining a significant advantage over Intel and others in chip design focused on energy efficiency. 

The move has influenced other major players like Alphabet Inc GOOG GOOGL Google, Qualcomm, and Amazon.Com Inc AMZN to design custom chips based on ARM's architecture, primarily manufactured by Samsung Electronics Co SSNLF and Taiwan Semiconductor Manufacturing Co TSM.

Intel's market share faces a threat as Apple moves away from Intel chips, and Google's Chromebooks and Microsoft Corp's MSFT Windows devices increasingly adopt non-Intel processors. 

Apple's market share in desktops and notebooks has risen significantly, intensifying the competition.

Microsoft, once a close ally in the "Wintel" partnership, is distancing itself from Intel. Microsoft's focus on cloud-based Windows experiences and ARM-based data center chips signifies a significant shift. 

Amazon's cloud-streamed Windows devices and Qualcomm's ARM-based chips for notebooks further pressure Intel.

Despite these challenges, Intel remains a formidable competitor, planning new chip generations and aiming to match TSMC's manufacturing technology by 2025. 

Price Action: INTC shares traded lower by 0.66% at $43.45 premarket on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.