ARM Holdings plc (ADR) (NASDAQ:ARMH)

CAPS Rating: 2 out of 5

The Company designs reduced instruction set computing microprocessors and related technology and software and sells development tools to enhance the performance, cost-effectiveness and power-efficiency of high-volume embedded applications.


Player Avatar bradyamanaka (< 20) Submitted: 2/26/2012 10:35:10 PM : Underperform Start Price: $26.55 ARMH Score: -23.05

Intel is moving into the smartphone/tablet arena. These guys haven't been first to either the computer or the server market, but when they get there, they win. The same thing is going to happen in the smartphone/tablet arena. Intel spends more on R+D than ARMH grosses in revenue in a year. ARMH is completely dependent on the foundries while Intel's vertical integration allows better collaboration between R+D and manufacturing. They consequently have much better process management than any of the foundries and this is going to make a large impact in the smartphone/tablet market later this year and next year. This impact will be larger than any impact that ARMH may have on servers/PC market.

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