Arm Holdings stock jumped Tuesday after Alphabet's Google announced its first central processing unit for its data centers based on Arm technology. But Arm stock couldn't hold on to those gains.
The internet search giant introduced its Google Axion processor at the company's Google Cloud Next conference in Las Vegas.
"Axion delivers industry-leading performance and energy efficiency and will be available to Google Cloud customers later this year," Amin Vahdat, Google vice president and general manager of machine learning, systems and cloud AI, said in a blog post.
In morning trades on the stock market today, Arm stock rose as much as 4.8% to 135.41. But the stock gave up those gains and ended the regular session down 1.9% to 126.81.
Boasts Better Performance, Energy Efficiency
Axion is the latest in a long line of custom Google silicon. Those chips include five generations of its Tensor processing unit chips since 2015.
"Axion processors combine Google's silicon expertise with Arm's highest performing CPU cores to deliver instances with up to 30% better performance than the fastest general-purpose Arm-based instances available in the cloud today," Vahdat said.
Better yet, Axion chips offer up to 50% better performance and up to 60% better energy-efficiency than comparable current-generation x86-based instances, he said.
In a statement, Arm Chief Executive Rene Haas said the new chip leverages the expertise of both companies.
"Google's announcement of the new Axion CPU marks a significant milestone in delivering custom silicon that is optimized for Google's infrastructure, and built on our high-performance Arm Neoverse V2 platform," Haas said.
Arm Stock In Consolidation Pattern
Arm stock has been consolidating for the past eight weeks with a buy point of 164, according to IBD MarketSurge charts. That buy point is also the stock's all-time high, reached on Feb. 12, three trading days after the chip designer posted fiscal third-quarter results.
Arm Holdings went public on Sept. 14, with its shares priced at 51.
Aggressive investors could find early entries for Arm stock at resistance levels of 137, 145 and 150, according to IBD analysis.
Arm stock is on three IBD lists: IBD 50, Leaderboard and Tech Leaders. Google stock is on IBD's Tech Leaders list as well.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
