In a new report, Detwiler Fenton analyst Jeff Johnson discussed some big names that might have Applied Micro Circuits Corporation AMCC on their shopping lists.
According to Johnson, Applied Micro is the furthest along of the semiconductor companies working in the ARM server market. Detwiler Fenton expects Applied Micro will debut a 96-core chip within the next month, which will demonstrate its lead over closest rival Cavium Inc CAVM.
Possible Buyers
Since Apple Inc. AAPL, Alphabet Inc GOOGL GOOG, Amazon.com, Inc. AMZN and Microsoft Corporation MSFT have all recently launched their own internal ARM-based server chip initiatives, Johnson concluded a buyout of Applied Micro would make a lot of sense for any of these big tech names.
“Throw in the fact that ARMH (ARM Holdings plc (ADR) ARMH) believes that by 2020, its share of the server market will jump to 25 percent (up from ~1 percent today), and it’s not surprising we’re seeing growing interest in ARM server solutions from AAPL, GOOG etc.,” he added.
Johnson also mentioned QUALCOMM, Inc. QCOM as another potential buyer of Applied Micro or Cavium.
Disclosure: The author holds no position in the stocks mentioned.
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