Unexpected Connections of Arm Holdings: Apple's Roots and Nvidia's Breezy CEO Transition
4 Fascinating Insights About Arm Holdings
Last month, Arm stock soared 48% after the newly public company released its quarterly report. Learn more about the world's leading chip designer here. Last month, Arm Holdings (NASDAQ: ARM) stock rocketed 48% on the day following the chip designer's release of a strong report for its third quarter of fiscal 2024, which ended on Dec. 31, 2023. Management cited artificial intelligence (AI) as a main growth driver.
- Apple was involved in the founding of Arm: Arm was founded in 1990 as Advanced RISC Machines, which was a joint venture between the now defunct Acorn Computers, Apple, and VLSI Technology (some parts of which are now part of NXP Semiconductors). RISC stands for 'reduced instruction set computer,' which Arm defines as a 'type of microprocessor architecture that utilizes a small, highly optimized set of instructions rather than the highly specialized set of instructions typically found in other architectures.'
- Arm's tech is in over 99% of smartphones: Arm's energy-efficient CPU architecture is widely considered one of the key drivers of the smartphone revolution, as these mobile devices need processors that don't consume a lot of power.
- Arm's board of directors includes the leader of Apple's team that created the early iPods and iPhones: Arm's board of directors includes Tony Fadell. He led the team at Apple 'that created the first 18 generations of the iPod and the first three generations of the iPhone,' according to his profile on Arm's website. Fadell is widely credited with inventing the iPod music player.
- Arm's CEO is a former Nvidia exec: Investors who have been following Nvidia for some time probably know that the leading artificial intelligence (AI) chipmaker tried to acquire Arm but abandoned the pending deal in early 2022. However, it's not likely many investors are aware that Arm CEO Rene Haas spent seven years at Nvidia as vice president and general manager of its computing products business before joining Arm in 2013. Haas was elevated to Arm's CEO position in 2022 following the failed Nvidia deal.
Fadell's background is a great fit for Arm's board, which also includes others with very relevant experience, including former executives at major semiconductor companies Nvidia, Intel, and Qualcomm.
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