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British chip technology firm, Arm Ltd, which NVIDIA Corporation is acquiring NVDA 0.62% in a $40 billion deal, elaborated on its next generation of data center technology, citing Oracle Corp (NYSE: ORCL) and Alibaba Group Holding Ltd (NYSE: BABA) as customers, Reuters reports.
Qualcomm Inc (NASDAQ: QCOM) and Apple Inc (NASDAQ: AAPL) licensed Arm’s underlying intellectual property to create their processor chips.
Arm’s entry into the data center processor market will intensify competition with Intel Corp (NASDAQ: INTC) and Advanced Micro Devices Inc (NASDAQ: AMD).
Intel competitor NVIDIA Corp (NASDAQ: NVDA) targeted the $40 billion Arm acquisition to capitalize on the latter’s data center push, stated analysts.
Arm’s N2 Neoverse computing cores were estimated to be about 40% faster than the previous generation. The artificial intelligence-focused V1 cores were estimated to be 50% faster than traditional methods.
Marvell Technology Inc (NASDAQ: MRVL) was making a chip using Arm’s new technology. Oracle will use Ampere Computing produced Arm-based chips for its cloud computing business. Alibaba was set to offer Arm-based cloud computing services via an unnamed chip vendor.
Price action: NVDA shares traded lower by 0.58% at $615.51 on the last check Tuesday.
Investing.com -- Nvidia (NASDAQ: NVDA) rose 2.6% after Baird said it's poised to dominate.
Analyst Tristan Gerra initiated the company with an outperform rating and a price target of $800, matching the Street high.
"AI computing represents the most transformational technology of our era. As Nvidia increasingly moves to platform solutions targeting and enabling all AI markets, while diversifying its architecture offering, the company is poised to over time dominate data center," Gerra wrote in a note, according to StreetInsider. "Omniverse gives us an early glimpse of a virtual 3D world which Nvidia is at the forefront and ultimately yielding to a matrix computing world. More near term, GTC-announced foray into CPUs will expand Nvidia's computing TAM."
It doesn't hurt that Nvidia makes chips amid a shortage of them. The automotive industry is reeling from a lack of chips, curbing production, while demand for computers and phones amid the pandemic work-from-home, play-from-home dynamic exacerbated the problem.