ARM (ARMH) Shares Rip Higher as H-P (HPQ) Selects Co. for New Servers
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Hewlett-Packard (NYSE: HPQ) shares are trading modestly higher pre-market action Wednesday following reports the company is looking to challenge rival Intel (Nasdaq: INTC) more wholly in the server market.
According to rumors earlier, Hewlett-Packard is starting to build servers utilizing ARM (Nasdaq: ARMH)-based technology. Hewlett-Packard is working with Calxeda, partially owned by ARM Holdings.
With Intel chips in about 90 percent of servers, the move may seem unconventional by some. But Hewlett-Packard might just be on to something.
According to Bloomberg, ARM VP Mike Inglis has said one of the biggest problems in server farms is power management. He didn't elaborate further on the topic.
Calxeda also did not comment, but does have a product release event scheduled for November 1st.
The move is somewhat of a role-reversal for the two companies. Intel has been unsuccessfully trying to catch up with ARM in the mobile device market, partially attributable to power consumption from its products. Peers like NVIDIA (Nasdaq: NVDA) and QUALCOMM (Nasdaq: QCOM) have already embraced ARM technology for chip development.
Ironically, Hewlett-Packard, being the largest PC shipper globally, accounts for the lions share of Intel's revenue: about 19 percent as of the last quarter. But it's not like Intel will just stop supplying Hewlett-Packard with chips if it makes a bolder move into the server arena, right?
Hewlett-Packard stock is up about 0.6 percent Wednesday, while Intel shares are 0.5 percent better and shares of ARM are ripping over 3 percent.
According to rumors earlier, Hewlett-Packard is starting to build servers utilizing ARM (Nasdaq: ARMH)-based technology. Hewlett-Packard is working with Calxeda, partially owned by ARM Holdings.
With Intel chips in about 90 percent of servers, the move may seem unconventional by some. But Hewlett-Packard might just be on to something.
According to Bloomberg, ARM VP Mike Inglis has said one of the biggest problems in server farms is power management. He didn't elaborate further on the topic.
Calxeda also did not comment, but does have a product release event scheduled for November 1st.
The move is somewhat of a role-reversal for the two companies. Intel has been unsuccessfully trying to catch up with ARM in the mobile device market, partially attributable to power consumption from its products. Peers like NVIDIA (Nasdaq: NVDA) and QUALCOMM (Nasdaq: QCOM) have already embraced ARM technology for chip development.
Ironically, Hewlett-Packard, being the largest PC shipper globally, accounts for the lions share of Intel's revenue: about 19 percent as of the last quarter. But it's not like Intel will just stop supplying Hewlett-Packard with chips if it makes a bolder move into the server arena, right?
Hewlett-Packard stock is up about 0.6 percent Wednesday, while Intel shares are 0.5 percent better and shares of ARM are ripping over 3 percent.
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