ARM share price: Company taps into high-performance servers
iNVEZZ.com, Tuesday, June 24: ARM Holdings (LON:ARM) has teamed up with Nvidia Inc (NASDAQ:NVDA) to take on the the supercomputing market, in a move that could help the British chip designer broaden the reach of its 64-bit processors beyond Apple Inc’s (NASDAQ:AAPL)iPhone 5S.
The first 64-bit ARM-based high-performance computers (HPC), equipped with Nvidia graphic cards, will hit the market later this year, it was revealed yesterday at an industry fair in Germany. Three computer manufacturers have already signed up to use ARM technology for HPC systems, with others expected to follow.
In today’s trading, ARM shares were up 0.4 percent at 911.50p as of 14:09 BST. The company’s stock has fallen 17.2 percent since the start of the year.
Today ARM is manly known for its work in the mobile space, where the vast majority of devices are powered by chips based on its designs. However, the company has also been exploring other areas in an attempt to find fresh sources of revenue amid a slowdown in global sales of smartphones and tablets. For example, ARM has made moves to take advantage of the growing ‘Internet of things” concept. And it now appears that the firm is looking to move into servers too.
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The first high-performance servers with ARM 64-bit processors were announced with Nvidia’s Tesla graphics cards at the International Supercomputing Conference in Leipzig, Germany. The systems from Cirrascale Corp, E4 Computer Engineering, and the Eurotech Group will feature the Applied Micro X-Gene system-on-a-chip (SoC), with 64-bit ARMv8-based processor cores, and Nvidia Tesla K20 GPU-based accelerators, and will come later this year.
Other computer manufacturers, including global powerhouses Hewett-Packard Co (NYSE:HPQ) and Dell Inc, are also planning to release servers based on Applied Micro’s X-Gene processor.
**Analysts on ARM**
According to The Financial Times, the 23 analysts offering 12 month price targets for ARM have a median target of 1,050p, with a high estimate of 3,584.46p and a low estimate of 680.00p. As of Jun 20, 2014, the consensus forecast amongst 43 polled investment analysts covering ARM Holdings plc advises that the company will outperform the market. The same investment sentiment has been maintained since the sentiment of investment analysts improved on Jul 03, 2013.
**As of 14:43 BST buy ARM shares at 911.00p**
**As of 14:43 BST sell ARM shares at 910.50p**