ARM stock grows to overweight, gets Morgan Stanley's "Best Idea"

ARM stock grows to overweight, gets Morgan Stanley's
British mobile chip architects ARM’s stock is probably one of the best investment opportunities at the moment. That’s the conclusion one can draw after Morgan Stanley raised its rating on ARM Holdings from Equal Weight to Overweight.

“The risks on earnings remain clearly on the upside,” analyst Francois Meunier explained. ARM’s got a two-year headstart on Intel in the mobile market. These were the reasons behind Morgan Stanley’s promotion of the stock to “Best Idea.” The tipping point? The iPad, of course, but also Windows 8 on ARM.


And for the time being, ARM’s success is not hugely dependent on the upcoming Windows 8 platform, so even if something goes wrong with Windows 8 on ARM, the chip designer still has plenty of space for growth.

Morgan Stanley also asserts that despite Intel’s efforts, the company won’t be able to catch up with ARM in the coming two years. Intel on its part is looking for partners to bring its Atom chips to mobile devices and so far Motorola, Lenovo and Orange have announced devices with its silicon.

source: Forbes

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4 Comments

1. Accent

Posts: 3; Member since: Mar 08, 2012

History repeats itself. No one can stop Intel. Remember, Intel's single core processor beats all the dual core processors including the ones on Samsung Galaxy Nexus and Galaxy S2. Check the benchmarks.

2. cepcamba

Posts: 717; Member since: Feb 27, 2012

Agree. Intel's expertise can't just be put aside. I'm actually seeing Intel becoming a major mobile chip manufacturer in the next 3-5 years. The next 1-2 years will be their show time era, where they prove the quality of their initial offerings.

3. medicci37

Posts: 1361; Member since: Nov 19, 2011

Right now, Intel can't compete with arm on mobile devices. They are paying the price for not taking mobile computing seriously.

4. cepcamba

Posts: 717; Member since: Feb 27, 2012

Have to agree. They put more effort in developing supercomputers. Of course those are useful for big companies, but not homes and common people. Mobile devices are the PCs of the future.

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