ARM euphoria cooling after HP deal

ARM Holdings, the British computer chip designer is still 2.45% above yesterday's close following the announcement last night of a tie up with Hewlett Packard.

HP has announced it will be making low power servers using ARM's chip designs.

ARM's products, which are usually used in mobile phones, require up to 90% less energy than their rivals' Intel, so for some customers with huge "server farms" the new HP devices could be a serious cost saving.

Article continues below

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

ARM would make money through a licensing agreement with the actual manufacturer of the chips, Calxeda, based in Texas (and part owned by ARM).

This morning saw investors euphoric over the deal, with shares up nearly 6%. Since then, however, cooler heads have prevailed, leaving the stock at 586p in London, up 14p on the day.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.