British Arm recently reported quarterly revenue growth of 28% to $746 million, with $446 million in royalties, up 12% from the same period in 2021. The company was able to increase revenue in the face of falling demand for smartphones due to an increase in the number of cores in processors and the transition of customers to more modern architectures. According to the leadership of Arm, it will successfully adapt to the growth of interest in artificial intelligence systems.
Image Source: David Paul Morris, Bloomberg
In an interview with Bloomberg TV, Arm CEO Rene Haas said: “I think the area where we will do well is energy efficiency. These new AI algorithms are intense, and in a world where there isn’t much energy to devote to solving this problem, this feature will be critical.” Artificial intelligence systems, as René Haas added, use “a huge number of computing cycles”, which should also contribute to the popularity of processors with Arm architectures in this segment.
In addition, the head of Arm considers cloud computing and the automotive segment to be the areas of the company’s most active business growth in the short term. In the automotive segment, Arm architectures are already used in 85% of the processors that power in-flight infotainment systems, as well as 55% of the processors that form active driver assistance systems. Successful business diversification will enable the company to weather the current market downturn better than most other players, Haas said. He also noted that preparations for the return of Arm to the exchange are in full swing, and the IPO of the company may take place before the end of this year.
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