ARM Holdings plc (ARMH) specializes in the design of low-power chips and its designs are in currently 90% of the chips used in mobile devices, but ARMH now sees room for expansion in data centers and servers, says Deborah L. Koch, Co-Manager of the the Northern Trust’s (NTRS) Northern Technology Fund (NTCHX).
“ARM chips … don’t throw off as much heat and consume less energy. Not only is low power important in mobile devices, but it is also becoming more important in data centers, which consume a lot of electricity, and we expect ARM chips to be used in servers in the future,” Koch said.
Koch adds that low power servers are expected to become 10% to 15% of the overall server market, creating great room for expansion for ARM technology.
“We think that with the new workloads that demand these highly compute-intensive applications, whether it’s analytics or other cloud-enabled applications, ARM has an opportunity to expand their market in the future,” she said.