Matt Schifrin is vice president and investments editor at Forbes Media.
According to Next Inning Technology Research editor Paul McWilliams Apple’s (nyse:AAPL) new iPad has PA Semiconductors written all over it. PA Semi was purchased by Apple in 2008. It specializes in designing sopisticated low-power chips. That’s great news for ARM Holdings PLC a small British semiconductor company that licenses its intellectual property to PA Semi. ARMH competes with Intel (INTC) in this business but it is a David to the Intel Goliath.
ARM Holding’s (ARMH) stock gained 4.4% today and things could get better. Before Apple’s iPad was announced McWilliams told his premium subscribers this about ARMH: “The real deal for ARMH right now is the very rapid growth in the smartphone sector where ARMH has nearly if not literally 100% market share. From there, there are a bevy of consumer markets that I expect will be addressed by multi-core ARMH products.” McWilliams covers technology stocks in his Next Inning Research and reports frequently on semiconductors and the growting netbook market, which Apple shook with its latest announcement. For more on Next Inning, click here.
Disclosure: The author owns shares in AAPL as does Paul McWilliams. McWilliams also holds a position in ARMH.