Hand Holdings (NASDAQ:) said it aims to capture more than 50% of the Windows PC market within five years as Microsoft (NASDAQ:) and its hardware partners prepare to launch a new line of computers based on Arm technology.
Shares of the chipmaker rose 4% before the market opened Monday.
Demand for Arm technology in personal computing has surged since Microsoft announced plans last month to introduce a new generation of PCs with artificial intelligence capabilities, aiming to compete with Alphabet (NASDAQ:) and Apple (NASDAQ:).
The flagship Windows operating system will now run on chips developed by Arm, whose technology has played a critical role in the development of smartphones. Intel (NASDAQ:) has long dominated the PC industry, but if Arm’s initiative is successful, it could significantly change the market.
“Arm’s share of the Windows market – I actually think it could be over 50% in the next five years,” Arm CEO Rene Haas told Reuters.
Microsoft is investing heavily in this transition, developing a set of software tools to ensure programs run smoothly on Arm-based chips, offering an attractive alternative to x86 technology from Advanced Micro Devices (NASDAQ:) and Intel.
“They (Microsoft) have surpassed everything they had (in developer tools), and they’ve really embraced it in the last couple of years,” Haas said. “They are very, very dedicated from a software standpoint.”
Following Apple’s successful adoption of Arm designs in its M-series processors, known for their long battery life and high performance, Microsoft and OEMs are looking to replicate that success in the Windows PC market.
Qualcomm (NASDAQ:) has unveiled the first Arm-based chip for Windows PCs, with more manufacturers expected to follow, according to Arm’s CEO. Moreover, device makers like Asus and Dell Technologies (NYSE:) are set to release machines equipped with Arm-based systems.