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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