Arm Stock: Chip designer adding artificial intelligence to mobile devices

Chip designer Holding arms (ARM) on Wednesday introduced a new mobile computing platform optimized for artificial intelligence. Fixtures stocks moved ahead of the news.

Arm announced the launch of Arm Computing Systems for the customer. The new platform focuses on energy efficiency, performance and security for Android, Linux and Windows devices.

“This is a pivotal moment for the mobile industry,” Christopher Bergey, senior vice president and general manager of Arm customers, said during a conference call with media. “On-device AI is once again redefining intelligence in smartphones.”

Bergey said Arm CSS for Client will provide chip designers with a platform to create chips for AI-enabled mobile devices.

“Arm is the foundation of the next wave of compute performance requirements,” he said.

In today’s morning trading on the stock exchange, Arm shares fell by more than 2% to 121.58.

Arm shares rose 9% to 124.94 on Tuesday. With this move, it jumped above its 50-day moving average line, which has been the ceiling for the stock for the past few weeks.

Gun stocks are on two IBD lists

The new platform makes it easier to build ARM-based systems and will help reduce time to market, Bergey said. It is intended for process nodes with a size of 3 nanometers. The semiconductor industry measures the width of circuits in chips in nanometers, which is one billionth of a meter.

Arm Compute Systems for Client uses the latest Arm architecture, Arm v9.2. Integrates CPUs with graphics processing units to increase performance.

On Tuesday, Rosenblatt Securities analyst Hans Mosesmann maintained his buy rating on Arm shares, setting a price target of 180.

“Our inspections over the last few weeks have shown that there is significant and ongoing interest in licensing the company’s broad portfolio,” Mosesmann said. “Customers are moving faster, and their in-house expertise is not sufficient to rapidly deploy the next generation of silicon.”

In addition to core mobile processors, Arm is increasingly moving into personal computers and data centers, he said.

Gun stocks feature on two IBD lists: IBD 50 and Tech Leaders.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more articles on consumer technology, software and semiconductor stocks.

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