Google Ditching Intel for ARM Chips Could Mean Big Things in Tech

In Silicon Valley, and the tech industry more broadly, search giant Google (NASDAQ: GOOGL  ) enjoys a somewhat privileged status.

For starters, Google is the epitome of the garage start-up that grew into a global power. And now, having reached a size of truly massive proportions, Google can enjoy the status of being a kind of a kingmaker for the broader tech industry. That's why it's big news that Google may consider changing Intel (NASDAQ: INTC  ) chips for those from ARM Holdings (NASDAQ: ARMH  ) for its massive network of global server farms.

Would Google sink Intel
In the early analysis, Intel (NASDAQ: INTC  ) , the world's largest semiconductor maker, has the most to lose if Google were to switch to ARM-based chips.

The revenue hit would be obvious. Google is Intel's fifth-largest customer, so the impact on Intel's top line would be material. However, if Google defects from Intel servers, as well, it could begin a trend that could, perhaps, have more dire consequences for Intel than simply losing the sales to Google alone.

In the video below, tech and telecom analyst Andrew Tonner looks at this recent news out of Google, and digs into some of the potential implications the billion-dollar storyline could have on tech investors everywhere. 

Forget Google... this is tech's best growth stock
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free, and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.


Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 22, 2013, at 6:51 PM, masterwallstreet wrote:

    In my opinion only, I like your article about Google switching over to ARM servers. I am also hearing about the competition doing this also like Amazon, Verizon, Yahoo. How true are these rumors? I know the ARM servers run cooler and are more energy efficient. They save companies millions. Also wouldn't it be a lot cheaper if Google bought out AMD. AMD is coming out with a 64 bit ARM server in 2014. It would be cheaper than creating their own server. All that AMD has to offer and their products I think they are in tablets, laptops, Playstation, X Box and MacPro. They are supposed to have the best video card on the market.

  • Report this Comment On December 23, 2013, at 3:34 PM, roguesisland wrote:

    More FUD. Rumors that morph into fact.

    A child spewing regurgitated fallacy.

    Catch it all here on the Motley FUD.

  • Report this Comment On December 24, 2013, at 1:40 AM, sonofhistoryprof wrote:

    I've looked for facts beyond "Google considering..." Apparently, I missed them. A whole article on considering? A whole article on speculation. I speculate that the journalism here may be shoddy.

    The previous poster says, "I know ARM servers run cooler and are more energy efficient." Is that true? By what standard? When was the last time ARM made a server? They only design chips; the don't fabricate a single one.

    I'm all for keeping companies honest. But I'm more for getting solid investment advice. Did I come to the wrong place?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2772810, ~/Articles/ArticleHandler.aspx, 9/19/2014 4:08:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement