Apple (AAPL) Could Benefit from Switch to ARM (ARMH) Chips & Intel (INTC) Might Suffer
More chatter about Apple (Nasdaq: AAPL) switching its chipmaker is hitting the market today and may give the stock a little boost.
According to Nomura, Apple moving from Intel (Nasdaq: INTC) processors to its own ARM Holdings (Nasdaq: ARMH)-based chipsets would add to profitability for the company. The firm notes that ARM chips would provide better power and efficiency, allowing for closer integration with the iPad.
Nomura believes a switch would increase Apple's profit by $6.50 per share, though gains are most likely to be offset by lower prices or a differentiated product range.
Intel may not be able to reduce the impact of Apple shifting away via its gains in mobile, Nomura also noted. The firm is keeping its Reduce rating and $19 target on Intel.
For ARM, the move by Apple might a boost in more way than one. More PC OEMs might make a move away from Intel if the switch by Apple pans out well.
Nomura currently rates ARM and Apple at Neutral, with a $660 price target on Apple.
According to Nomura, Apple moving from Intel (Nasdaq: INTC) processors to its own ARM Holdings (Nasdaq: ARMH)-based chipsets would add to profitability for the company. The firm notes that ARM chips would provide better power and efficiency, allowing for closer integration with the iPad.
Nomura believes a switch would increase Apple's profit by $6.50 per share, though gains are most likely to be offset by lower prices or a differentiated product range.
Intel may not be able to reduce the impact of Apple shifting away via its gains in mobile, Nomura also noted. The firm is keeping its Reduce rating and $19 target on Intel.
For ARM, the move by Apple might a boost in more way than one. More PC OEMs might make a move away from Intel if the switch by Apple pans out well.
Nomura currently rates ARM and Apple at Neutral, with a $660 price target on Apple.