Arm Is Vulnerable to GPU Kingpin Nvidia and More In Changing Semiconductor Landscape: Analyst
Portfolio Pulse from Anusuya Lahiri
Needham analyst Charles Shi initiated coverage on ARM Holdings with a Hold rating, citing the changing semiconductor landscape. Shi sees the world entering a post-smartphone era with high-performance computing and IoT leading the next phase of semiconductor growth. Despite ARM's success in smartphones, Shi believes the company will face challenges in these new growth areas. ARM's contribution to IoT is still below 10% and the company faces competition from Nvidia, Intel, and AMD in the data center ecosystem. ARM shares traded lower by 1.57% at $62.56.

September 15, 2023 | 3:42 pm
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AMD is mentioned as a key player in the data center ecosystem, which is expected to drive the next phase of semiconductor growth.
The mention of AMD as a key player in the data center ecosystem, which is expected to drive the next phase of semiconductor growth, could positively impact AMD's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
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Intel is mentioned as a key player in the data center ecosystem, which is expected to drive the next phase of semiconductor growth.
The mention of Intel as a key player in the data center ecosystem, which is expected to drive the next phase of semiconductor growth, could positively impact Intel's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
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Nvidia is mentioned as a key player in the data center ecosystem, which is expected to drive the next phase of semiconductor growth.
The mention of Nvidia as a key player in the data center ecosystem, which is expected to drive the next phase of semiconductor growth, could positively impact Nvidia's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
ARM Holdings faces challenges in the changing semiconductor landscape, with its IoT contribution still below 10%. The company also faces competition from Nvidia, Intel, and AMD in the data center ecosystem.
The analyst's Hold rating and the mention of challenges in the changing semiconductor landscape, along with competition from Nvidia, Intel, and AMD, could negatively impact ARM's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100