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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. 

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

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  • 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?

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