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Which Tech Giants Might Buy Applied Micro?

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Which Tech Giants Might Buy Applied Micro?

In a new report, Detwiler Fenton analyst Jeff Johnson discussed some big names that might have Applied Micro Circuits Corporation (NASDAQ: 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 (NASDAQ: CAVM).

Possible Buyers

Since Apple Inc. (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corporation (NASDAQ: 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.

Related Link: Gabelli & Co's Top Technology, Media And Telecom Stocks For 2016

“Throw in the fact that ARMH (ARM Holdings plc (ADR) (NASDAQ: 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. (NASDAQ: QCOM) as another potential buyer of Applied Micro or Cavium.

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain

Latest Ratings for ARMH

DateFirmActionFromTo
Jul 2016BerenbergDowngradesBuyHold
Jul 2016BernsteinUpgradesUnderperformMarket Perform
Jul 2016Raymond JamesDowngradesOutperformMarket Perform

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