Deutsche sees Reuters chip report as positive catalyst for Arm shares

Deutsche Bank says competitive intensity in the PC market is rising after Reuters reported yesterday that Nvidia (NVDA) and AMD (AMD) had plans to develop Arm-based (ARM) CPUs that would run on Microsoft’s (MSFT) Windows operating system. The chips could be sold as soon as 2025, joining Qualcomm (QCOM) in its efforts to offer Arm-based Windows PCs after an exclusivity agreement between Qualcomm and Microsoft expires in 2024, the analyst tells investors in a research note. While admitting to no knowledge as to the validity of the story, Deutsche is not surprised by Microsoft’s efforts to expand the number of vendors providing Arm-based Windows offerings. The firm highlights that Arm has long had aspirations to penetrate the PC CPU market. Deutsche views this as a positive catalyst for Arm shares in that it further endorses the share-gain narrative. It sees the Reuters report as further indicative of competitive intensity in the processing space continuing to rise, but expects any meaningful shifts further away from Intel’s (INTC) x86 to still be several years out, “should they ever occur.”