On Tuesday, Nvidia Corp (NASDAQ:NVDA) chief Jensen Huang said Taiwanese fabless semiconductor company MediaTek could sell the desktop central processor chip the two companies revealed this week.

On Monday at CES 2025, Nvidia showcased Project DIGITS, a desktop computer that leverages the chip designer’s latest Blackwell AI chip and contains a new central processor that Nvidia and MediaTek co-developed, SCMP reports.

Huang told analysts that Nvidia tapped MediaTek to co-design an energy-efficient CPU they aimed to commercialize.

Also Read: Nvidia Highlights AI Chips Powering PUBG, Robotics ‘ChatGPT Moment,’ Automotive Expansion And More At CES Event

The Project DIGITS computer runs a Linux-based operating system from Nvidia, which AI developers use, the chip designer’s target market.

Nvidia aims to bridge the gap between the Linux operating system and Microsoft Corp’s (NASDAQ:MSFT) Windows by using Windows Subsystem for Linux.

MediaTek is a key Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) 3nm chip client. The 3nm technology can address emerging AI, mobile devices, and automotive computing needs.

Nvidia and Advanced Micro Devices, Inc (NASDAQ:AMD) have emerged as key competitors for Intel Corp (NASDAQ:INTC), which commanded the CPU market that goes into data centers after the latter failed to tap the AI frenzy.

Its peer, AMD, introduced Ryzen AI Max processors with 16 cores and advanced AI performance for laptops and desktops during CES 2025. The chip designer, in partnership with Dell Technologies Inc (NYSE:DELL), launched business PCs featuring Ryzen AI PRO processors.

In the third quarter, Intel commanded a 62% market share of x86 CPUs, followed by AMD at 35.5% as per Statista.

Price Action: NVDA stock is up 1.51% at $142.25 premarket at the last check Wednesday.

Also Read:

• Broadcom Thrives with 114% Stock Surge in AI Boom, While Intel Faces Steep Decline

Photo via Shutterstock

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga?

• NVIDIA (NVDA): Free Stock Analysis Report

This article Nvidia Teams Up With MediaTek to Challenge Intel and AMD in Desktop CPU Market originally appeared on Benzinga.com

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.