Chip designer Arm Holdings on Wednesday introduced a new computing platform for mobile devices optimized for artificial intelligence. Arm stock slid despite the news.
Arm announced its Arm Compute Subsystems for Client. The new platform emphasizes power efficiency, performance and security for Android, Linux and Windows devices.
"This is a pivotal moment for the mobile industry," Christopher Bergey, senior vice president and general manager for Arm's client business, said on a conference call with the news media. "On-device AI is yet again redefining the smart in smartphones."
Arm CSS for Client will provide chip designers the framework to create integrated circuits for AI-enabled mobile devices, Bergey said.
"Arm is the foundation for this next wave of computing performance demands," he said.
On the stock market today, Arm stock dropped 3.4% to close at 120.65.
On Tuesday, Arm stock soared 9% to 124.94. With the move, it jumped above its 50-day moving average line, which had acted as a ceiling on the stock for the past few weeks.
Arm Stock Is On Two IBD Lists
The new platform makes it easier to build Arm-based systems and will help speed time to market, Bergey said. It is designed for 3-nanometer process nodes. The semiconductor industry measures circuit widths on chips in nanometers, which are one-billionth of a meter.
Arm Compute Subsystems for Client uses the latest Arm architecture, Arm v9.2. It integrates central processing units with graphics processing units for increased performance.
On Tuesday, Rosenblatt Securities analyst Hans Mosesmann reiterated his buy rating on Arm stock with a price target of 180.
"In the past few weeks, our checks have shown that there is significant and ongoing interest in licensing the company's wide portfolio," Mosesmann said. "Customers are moving faster, and their in-house expertise is not sufficient for rapid deployment into the next generation of silicon."
In addition to its core in mobile processors, Arm increasingly is moving into personal computers and data centers, he said.
Arm stock is on two IBD lists: IBD 50 and Tech Leaders.
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