Benzinga | Apr 27, 2021 02:19PM EDT

Arm Marks Data Center Foray, Intensifying Competition With Intel, AMD: Reuters

* British chip technology firm, Arm Ltd, which NVIDIA Corporation is acquiring (NASDAQ:NVDA) in a $40 billion deal, elaborated on its next generation of data center technology, citing Oracle Corp (NYSE: ORCL) and Alibaba Group Holding Ltd (NYSE: BABA) as customers, Reuters reports.

* Qualcomm Inc (NASDAQ: QCOM) and Apple Inc (NASDAQ: AAPL) licensed Arm's underlying intellectual property to create their processor chips.

* Arm's entry into the data center processor market will intensify competition with Intel Corp (NASDAQ: INTC) and Advanced Micro Devices Inc (NASDAQ: AMD).

* Intel competitor NVIDIA Corp (NASDAQ: NVDA) targeted the $40 billion Arm acquisition to capitalize on the latter's data center push, stated analysts.

* Arm's N2 Neoverse computing cores were estimated to be about 40% faster than the previous generation. The artificial intelligence-focused V1 cores were estimated to be 50% faster than traditional methods.

* Marvell Technology Inc (NASDAQ: MRVL) was making a chip using Arm's new technology. Oracle will use Ampere Computing produced Arm-based chips for its cloud computing business. Alibaba was set to offer Arm-based cloud computing services via an unnamed chip vendor.

* Price action: NVDA shares traded lower by 0.58% at $615.51 on the last check Tuesday.