Semiconductor Silicon Intelligence Finance (IP) giant Arm Holdings PLC has the opportunity to become an important competitor in customized AI chips, and some analysts believe that its stock price has not yet reflected this potential. Foreign reports...
Semiconductor Silicon Intelligence Finance (IP) giant Arm Holdings PLC has the opportunity to become an important competitor in customized AI chips, and some analysts believe that its stock price has not yet reflected this potential.
Foreign reports such as MarketWatch and Seeking Alpha, French Bank of Paris (BNP Paribas) analyst David O’ Connor and research team raised Arm investment evaluation from "neutral" to "performance advantage over the market", and the target price also significantly increased from $110 to $210.
As technology giants continue to increase AI capital expenditure, O’Connor and the team believe that Arm will next become an ASIC (special application integral circuit) manufacturer is a reasonable development. However, they mentioned that the Arm Leader has not issued any official statement on the ASIC strategy so far.
Arm currently only licenses IC designs and does not sell its own chips. O’Connor believes that as long as Arm can obtain 7% of the market, ASIC merchants can double the company's pre-interest tax profit.
The securities estimate that ASIC's overall potential market is expected to reach US$200 billion in 2030. At this rate, it is estimated that the ASIC business under Arm is expected to be charged USD 80 to 15 billion in 2030 to 2031.
At the beginning of the year, Arm's share price has risen by 24.76%. The French-Ba team believes that Arm still has a lot of room for upsurge because its stock price has not yet reflected the potential opportunity to enter the ASIC market.
O’Connor quoted several recent news, pointing out that Arm may start producing ASIC chips. For example, according to the British Financial Times report in February, Arm plans to release a brand new chip this year, while Facebook's parent company Meta Platforms Inc. is the first buyer.
In addition, Arm also participated in the "Stargate Project" led by Softbank, which US President Donald Trump called it "the largest AI-based construction project in history."
Arm's final 16th news hit 4.62%, closing at $153.90, setting a new closing high since July 3.
Extended reading: Arm's first self-developed chip is launched this summer! It is produced by Taiwan Electric, and Meta is the first customer OpenAI, Silver, Oracle Co., Ltd., with a four-year investment of US$500 billion to build an AI data center
