Arm Holdings (NASDAQ: ARM) stock posted significant gains in Friday’s trading. The semiconductor specialist’s share price ended the daily session up 4.6%, according to data from S&P Global Market Intelligence.
Reports emerged today that Arm is on track to detail its new strategy for the data center market when it reports quarterly earnings later this month. The stock may also be gaining grounds in conjunction with recent comments from another big player in the chip space.
Arm could have big data center news later this month
After the market closes July 31, Arm will publish results for the first quarter of its current fiscal year — a period which wrapped at the end of June. In addition to breaking down performance for the quarter, the company is expected to detail its strategy for expansion in the data center market.
While explosive growth for artificial intelligence (AI) and other accelerated computing applications has largely been powered by Nvidia‘s graphics processing units (GPUs), it’s possible that central processing units (CPUs) from Arm and other designers could come to play a bigger role in data centers.
Is the latest Intel news bullish for Arm?
Reuters reported today that Intel‘s chief technology officer Greg Lavender had stated his company could reach $1 billion in annual software revenue in 2027. Arm competes with Intel in the PC and server CPU markets, but the two companies also have some notable partnerships.
Most importantly, Arm and Intel are part of a coalition that aims to disrupt the dominance of Nvidia’s software platform for advanced GPUs and high-performance computing. If Intel’s software ambitions are taking shape, that could signal broadening AI opportunities for Arm as well.
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Why Arm Stock Jumped Today was originally published by The Motley Fool
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