Cavium Ventures into Supercomputers with Cray Collaboration - Analyst Blog

Semiconductor maker Cavium, Inc. (CAVM) is collaborating with supercomputer leader Cray Inc. (CRAY) to determine if Cavium's ThunderX ARM processors can be used as efficient processing technologies for supercomputers.

Cavium's ThunderX family of ARM-based processors was launched only recently and the technology promised game-changing applications in computing, storage and networking. This partnership seemingly validates the potential of Cavium's ThunderX that the company publicized as the world's highest performing low-power 64-bit ARMv8 SoC family of workload optimized processors. (For more details, read: Cavium Launches ThunderX Server Chip Family)

Cray is focusing on architectures of 64-bit ARM processors for potential applications in high-performance computing. ARM Holdings (ARMH) that licenses its chip technology to chipmakers such as Cavium, has been expanding its foothold in wireless infrastructure products. Being considered as the main processor in a high-performance computing environment has enormous implications for 64-bit ARM technology.

The alliance will attempt to design systems that integrate diverse processing technologies into a unified architecture, enabling enhanced performance density for future supercomputing platforms.

Cavium, best known for its LTE (Long Term Evolution) and small cells chips, is also expanding its footprint in the networking business via its recent acquisition of Xpliant – a startup working on Ethernet switches. With the Xpliant buy, Cavium is attempting to gain a footing in a market dominated by Broadcom Corp. (BRCM), as well as cater to the demands of next-generation switching equipment manufacturers.

Cavium has a knack for recognizing emerging market trends and introducing disruptive products to the wired and wireless infrastructure market. Its highly-diversified revenue base across customers, markets and applications expanded even further with the addition of ThunderX and Xpliant.

The company seems on track to create a product portfolio that will cater to the requirements of next-generation infrastructure network.

Cavium presently sports a Zacks Rank #3 (Hold).

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