Post by Admin on Jan 6, 2016 15:14:10 GMT -5
"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)."
finance.yahoo.com/news/tech-giants-might-buy-applied-183437358.html
What?!?!
I don't know how seriously to take the above, they misspelled the analyst's name (it's Johnston, not Johnson).
Quoting the source's website:
"The SoC battle in the ARM server market is on, and Applied Micro looks like a good near-term bet
By Jeff Johnston
Wednesday, June 17th 2015
ARM's (ARMH) foray into the server market brings with it investment opportunities in the SoC (system-on-chip) market. We've done some checks to see how the ARM server SoC companies stack up.
Key takeaways:
The ARM server market should begin to ramp-up as we exit 2015, with predictions that it will represent 10-15% of the server market by 2018.
Currently, Applied Micro (AMCC) is developing ARM server chips that are as scalable and intricate as those being developed by Cavium (CAVM), Broadcom (BRCM) and AMD (AMD)
AMCC should secure the lion's share of the ARM server chip market in 2016.
Background:
As ARMH attempts to chip away at Intel's (INTC) stranglehold on the server market, we think it's important to understand what differentiates ARMH's server chips from INTC's:
Lower cap-ex and op-ex. According to ARMH, ARM data center equipment will cost half the price of traditional equipment. They are also more power efficient, running at 1/7 the cost of traditional equipment. Lastly, ARMH claims that ARM based servers deliver up to 10 times more nodes per rack.
Ability to service a specific market niche. ARM servers will likely target a specific market niche(s) in order to provide support for porting and development efforts.
Installed base of ARM design tools. ARM enjoys the widest adoption of design tools. The semiconductor market has an ample amount of design experience with ARM core(s), tool suites and reference designs.
AMCC's first mover advantage presents opportunities in 2016
Based on our checks, we believe AMCC is the market leader with their X-Gene data center solution, and is currently working with all the major server manufacturers. AMCC was the first to fully license the ARMv8 architecture, and as such is permitted to create its own custom cores. This enables AMCC to customize their solution according to their customers' requirements. We see X-Gene's shipments beginning to ramp-up as we exit 2015, and given that the X-Gene1 currently enjoys a 12-month lead over CAVM's ThunderX, we see AMCC being the clear ARM server market share leader in 2016. We expect AMCC to begin shipping their next generation product, the X-Gene2, later this year. The X-Gene2 is expected to outperform AMD's Seattle Opteron A1100 (a comparable INTC based processor) which is a little low on the clock speed, albeit has a more innovative core and embeds more cache per core. We note that AMD's Seattle Opteron A1100 is currently the leading solution in INTC's eight-core Avoton C2000 platform.
Despite our checks regarding AMCC's leadership position, there seems to be a debate on the Street regarding which ARM SoC vendor is currently best positioned heading into 2016. Earlier this month, CAVM announced new ARM server partnerships with Asus, Wiwynn, Pegatron and Gigabyte. The belief with some is that these new partnerships are an indication of CAVM's lead over AMCC, and other ARM SoC companies. We don't see it that way. Our checks indicate that CAVM has a lot of work to do as their ThunderX product is reported to be a little light on memory bandwidth and cache memory capacity. Therefore, we believe AMCC will likely see significant y/y server growth in 2016.
However, we do believe ther is risk that CAVM will eventually close the gap.
While AMCC's first mover advantage positions the company to capture the lion's share of the ARM server market in 2016, we think CAVM will be a threat to AMCC as we exit 2016. CAVM has a very strong engineering bench with extensive experience in working with the application developer community. They also have established relationships with many of the major data centers. Additional competitive advantages include CAVM's ability/experience with different industry verticals, along with their ability to manage complex network switching algorithms."
And from recent notes:
"Applied Micro: Does its leadership position in the ARM server market make it a takeout candidate?
By Jeff Johnston
Wednesday, January 6th 2016
Given the increased interest tech heavyweights have for ARM servers, we could foresee a scenario where one of them acquires AMCC to supplement their internal ARM efforts.
Expectations are high associated with future opportunities in the ARM server market, which has spurred a good bit of investment among semiconductor companies. AMCC appears to be the furthest along, which could make them an attractive takeout candidate given the interest major tech companies have in supporting ARM based servers.
We expect AMCC to demo a 96 core chip later this month, which will put them firmly ahead of their main competitor, Cavium (CAVM), and could get the attention of some major tech heavyweights (think Apple (AAPL), Amazon (AMZN), Google (GOOG)). Our checks indicate that AAPL, GOOG, AMZN and Microsoft (MSFT) have recently started working on their own ARM based server chips as they look for alternatives to Intel (INTC). In addition to INTC alternatives, we believe these companies are growing weary of all the recent semiconductor consolidation, and the implications it could have on pricing.
Therefore, we could foresee a scenario where one of these companies acquires AMCC to supplement their internal ARM efforts. AMCC acquired the first architectural license for the ARM® v8 64-bit architecture in 2010, whereas we think the aforementioned tech heavyweights started working on ARM server chips just within the last 6 to 8 months. AMCC and has already commercialized their initial ARM server products. And they have a strong engineering organization with an advanced product roadmap. Throw in the fact that ARMH believes that by 2020, its share of the server market will jump to 25% (up from ~ 1% today), and it's not surprising we're seeing growing interest in ARM server solutions from AAPL, GOOG etc.
The other company that may be interested in acquiring AMCC (or Cavium (CAVM) for that matter) is Qualcomm (QCOM). QCOM is developing their own ARM server chips however, we believe they are well behind AMCC. Many of the investors we talk to expect QCOM to make an acquisition/s given the weakness in their core market. And while AMCC would be much smaller than what many are looking for, it's still a possibility."
finance.yahoo.com/news/tech-giants-might-buy-applied-183437358.html
What?!?!
I don't know how seriously to take the above, they misspelled the analyst's name (it's Johnston, not Johnson).
Quoting the source's website:
"The SoC battle in the ARM server market is on, and Applied Micro looks like a good near-term bet
By Jeff Johnston
Wednesday, June 17th 2015
ARM's (ARMH) foray into the server market brings with it investment opportunities in the SoC (system-on-chip) market. We've done some checks to see how the ARM server SoC companies stack up.
Key takeaways:
The ARM server market should begin to ramp-up as we exit 2015, with predictions that it will represent 10-15% of the server market by 2018.
Currently, Applied Micro (AMCC) is developing ARM server chips that are as scalable and intricate as those being developed by Cavium (CAVM), Broadcom (BRCM) and AMD (AMD)
AMCC should secure the lion's share of the ARM server chip market in 2016.
Background:
As ARMH attempts to chip away at Intel's (INTC) stranglehold on the server market, we think it's important to understand what differentiates ARMH's server chips from INTC's:
Lower cap-ex and op-ex. According to ARMH, ARM data center equipment will cost half the price of traditional equipment. They are also more power efficient, running at 1/7 the cost of traditional equipment. Lastly, ARMH claims that ARM based servers deliver up to 10 times more nodes per rack.
Ability to service a specific market niche. ARM servers will likely target a specific market niche(s) in order to provide support for porting and development efforts.
Installed base of ARM design tools. ARM enjoys the widest adoption of design tools. The semiconductor market has an ample amount of design experience with ARM core(s), tool suites and reference designs.
AMCC's first mover advantage presents opportunities in 2016
Based on our checks, we believe AMCC is the market leader with their X-Gene data center solution, and is currently working with all the major server manufacturers. AMCC was the first to fully license the ARMv8 architecture, and as such is permitted to create its own custom cores. This enables AMCC to customize their solution according to their customers' requirements. We see X-Gene's shipments beginning to ramp-up as we exit 2015, and given that the X-Gene1 currently enjoys a 12-month lead over CAVM's ThunderX, we see AMCC being the clear ARM server market share leader in 2016. We expect AMCC to begin shipping their next generation product, the X-Gene2, later this year. The X-Gene2 is expected to outperform AMD's Seattle Opteron A1100 (a comparable INTC based processor) which is a little low on the clock speed, albeit has a more innovative core and embeds more cache per core. We note that AMD's Seattle Opteron A1100 is currently the leading solution in INTC's eight-core Avoton C2000 platform.
Despite our checks regarding AMCC's leadership position, there seems to be a debate on the Street regarding which ARM SoC vendor is currently best positioned heading into 2016. Earlier this month, CAVM announced new ARM server partnerships with Asus, Wiwynn, Pegatron and Gigabyte. The belief with some is that these new partnerships are an indication of CAVM's lead over AMCC, and other ARM SoC companies. We don't see it that way. Our checks indicate that CAVM has a lot of work to do as their ThunderX product is reported to be a little light on memory bandwidth and cache memory capacity. Therefore, we believe AMCC will likely see significant y/y server growth in 2016.
However, we do believe ther is risk that CAVM will eventually close the gap.
While AMCC's first mover advantage positions the company to capture the lion's share of the ARM server market in 2016, we think CAVM will be a threat to AMCC as we exit 2016. CAVM has a very strong engineering bench with extensive experience in working with the application developer community. They also have established relationships with many of the major data centers. Additional competitive advantages include CAVM's ability/experience with different industry verticals, along with their ability to manage complex network switching algorithms."
And from recent notes:
"Applied Micro: Does its leadership position in the ARM server market make it a takeout candidate?
By Jeff Johnston
Wednesday, January 6th 2016
Given the increased interest tech heavyweights have for ARM servers, we could foresee a scenario where one of them acquires AMCC to supplement their internal ARM efforts.
Expectations are high associated with future opportunities in the ARM server market, which has spurred a good bit of investment among semiconductor companies. AMCC appears to be the furthest along, which could make them an attractive takeout candidate given the interest major tech companies have in supporting ARM based servers.
We expect AMCC to demo a 96 core chip later this month, which will put them firmly ahead of their main competitor, Cavium (CAVM), and could get the attention of some major tech heavyweights (think Apple (AAPL), Amazon (AMZN), Google (GOOG)). Our checks indicate that AAPL, GOOG, AMZN and Microsoft (MSFT) have recently started working on their own ARM based server chips as they look for alternatives to Intel (INTC). In addition to INTC alternatives, we believe these companies are growing weary of all the recent semiconductor consolidation, and the implications it could have on pricing.
Therefore, we could foresee a scenario where one of these companies acquires AMCC to supplement their internal ARM efforts. AMCC acquired the first architectural license for the ARM® v8 64-bit architecture in 2010, whereas we think the aforementioned tech heavyweights started working on ARM server chips just within the last 6 to 8 months. AMCC and has already commercialized their initial ARM server products. And they have a strong engineering organization with an advanced product roadmap. Throw in the fact that ARMH believes that by 2020, its share of the server market will jump to 25% (up from ~ 1% today), and it's not surprising we're seeing growing interest in ARM server solutions from AAPL, GOOG etc.
The other company that may be interested in acquiring AMCC (or Cavium (CAVM) for that matter) is Qualcomm (QCOM). QCOM is developing their own ARM server chips however, we believe they are well behind AMCC. Many of the investors we talk to expect QCOM to make an acquisition/s given the weakness in their core market. And while AMCC would be much smaller than what many are looking for, it's still a possibility."
