Intel Faces Heat From Arm’s Growing Popularity With Cloud Computing Giants Like Amazon and Microsoft – Yahoo Finance

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  • Softbank Group Corp (OTC: SFTBF) (OTC: SFTBY) Arm-based chips won market share in PCs and rivaled Intel Corp (NASDAQ: INTC) in the increasingly crucial data-center market.

  • Arm’s clientele included cloud-computing operators Amazon.com Inc (NASDAQ: AMZN), Microsoft Corp (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Apple Inc (NASDAQ: AAPL) as their data centers consumed a vast number of chips, the Wall Street Journal reports.

  • Amazon.com adopted the technology for its self-made server chips. Microsoft and Google worked on processors using building blocks licensed from Arm.

  • Apple launched two new versions of its in-house-designed Arm chips for MacBooks, ditching its long-preferred supplier for core processors, Intel.

  • Arm-based chips are the digital brains in more than 95% of smartphones, including all Apple iPhones.

  • Arm earns royalty payments on every chip made or sold using its design. Therefore, it generated $2.7 billion in revenue in 2021, still only about 3% the size of Intel.

  • Arm prepared for an initial public offering this year and is yet to decide where to list its shares, with political pressure in the U.K. to pick London.

  • Intel will likely post a 23% decline in revenue in its PC-focused business, according to FactSet.

  • Intel’s server business sales will likely retreat 40% from the year prior, reflecting a weakening economy and loss of market share to its rival Advanced Micro Devices Inc (NASDAQ: AMD) and Arm-based chips.

  • While global shipments of laptops will likely decline this year by a high single-digit percentage, those for Arm-based laptops could grow, according to Counterpoint Research.

  • Arm chips are now also found in virtual-reality headsets and autonomous vehicles.

  • Amazon’s latest Graviton chips based on Arm are up to 60% more efficient than its Intel and AMD CPUs, Amazon.com VP Dave Brown said.

  • In 2022, AMD CEO Lisa Su said that her company was in the early phases of working on Arm-based chips, likely to find a place in video gaming consoles.

  • Price Action: INTC shares traded lower by 0.50% at $30.12 in the premarket on the last check Tuesday.

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This article originally appeared on Benzinga.com

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