Semiconductor shares rise in morning trading,
Arm jumped over 6%; Super Micro rose over 5%; Micro Technology rose over 4%; Applied Materials, Intel rose over 2%.
The analysts said that Arm, as the dominant supplier of energy-efficient processor/subsystems IP, the company is well-positioned to benefit from rapid growth of generative Al in the cloud and at the edge.
The analysts expect content increases in mobile along with higher penetration of ARM architecture in auto, data center and PC markets to drive sustainable double-digit growth for the next several years.
Edge Al is a key catalyst for ARMv9, which offers about 2x royalties over prior generation and has a long runway. Compute Subsystems is another significant content driver that will start to contribute later this year. While Arm server adoption has been gradual, generative Al is making it necessary that low-power CPUs and the upcoming Nvidia GB2D0 should drive an acceleration, the analysts noted.
