How Arm Powers Chips By Apple, Amazon, Google And More

Arm beat expectations in its first post-IPO earnings report Wednesday. Its low-power chip architecture is in nearly every smartphone, replaced Intel’s x86 processors in Apple’s Mac computers, and is the basis for Qualcomm’s PC processors, and Amazon’s data center chips. CNBC went to Arm in Cambridge, England, to find out how it became the year’s biggest IPO despite 20% of revenue coming from China, struggling smartphone sales, and a failed $40 billion acquisition attempt by Nvidia.

Chapters:
00:00 — Introduction
02:46 — Apple and smartphone dominance
06:12 — Cash and competition
08:40 — Diversification and IP
12:01 — China and other risks

Produced by: Katie Tarasov
Edited by: Evan Lee Miller
Supervising Producer: Jeniece Pettitt
Animation: Jason Reginato, Christina Locopo
Camera: Sydney Boyo, Katie Brigham, Max Thurlow
Additional Footage: AMD, Apple, Arm, Getty Images, Google, Intel, Microsoft, Nvidia, Samsung, TSMC

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How Arm Powers Chips By Apple, Amazon, Google And More

[kortyEdna]

Thank you for the update, I already own shares of PALANTIR, TSLA, NVDA and APPL. I don't mind having other equities sit around for a while, but I'd also appreciate short term opportunities that could fetch huge return! I've got a $200k portfolio that I want to grow into 7 figure before staying 100% cash.

[johndeanconway]

I'm certain $NVDA is a no-brainer for the next few quarters, but $TSM is a better option too, as is $PLTR, with $AMD also performing well. I keep increasing my shares manageably, l'd add more into giant tech players who are solid in their own hardwares like $META and $GOOG

[delphipascal]

Nobody I know was hoping NVIDIA would be able to buy ARM. That would've been awful for the market.

[bulolo_wilber]

Props to ARM for the paradigm shift in RISC chips 👍

[georgecasseus]

In hindsight, knowing the rapid advancements in AI today, I think it was a good idea NVIDIA failed at buying ARM. Keep the competition active.

[winstonsmith]

For those who don’t know the history of ARM.

In October 1983, Sophie Wilson began designing the instruction set for one of the first reduced instruction set computer (RISC) processors, the Acorn RISC Machine (ARM). The ARM1 was delivered on 26 April 1985 and worked first time. This processor type was later to become one of the most successful IP cores – a licensed CPU core – and by 2012 was being used in 95% of smartphones.
Wilson designed Acorn Replay, the video architecture for Acorn machines. This included operating system extensions for video access, as well as the codecs, optimised to run high frame rate video on ARM CPUs from the ARM 2 onwards. You can’t own or patent a brain.

[stephenfazekas]

Fun fact ARM started out as acorn computers that built low end computers for schools in the UK

[JT_]

What Apple has been able to do so far with their inhouse ARM chips is extraordinary. It'll be an interesting space to watch.

[kevin_menon]

I have an ARM-based computer and it's often a pain to find software. Glad to see the big players are shifting towards it, it'll highly incentivize developers if they lead rhe ecosystem

[sullfolife]

pretty cool to see you in those videos over and over and seeing the belly growing haha, will be sad to not see you later when you'll take the break i love those videos super well done and very constructive good job team!

[darealphantom]

What ARM is doing with chips is amazing as a MacBook Pro owner/user the leap from Intel to ARM was great I love my M1 laptop I’ve never heard the fan come on and my computer works much better and fast than when I had an intel based Mac

[privacyvalued]

Saw RISC-V in action in a SBC compute form factor recently. It's performance was impressive given that in the last 12 months the best that RISC-V had to offer was just a raw chipset...at best. RISC-V has made incredible gains in the last few months in producing real hardware based on the instruction set. Those gains are bigger than what ARM has done over the entire existence of ARM. ARM is fairly proprietary and there's a distinct lack of software support on the open source side of things. In short, RISC-V based computing _might_ be headed to overtaking other instruction sets in terms of popularity within the next couple of years (x86/x64 and arm64).

[dsimpson]

Interesting there was no mention of the ARM based Microsoft Surface RT from 2012. It was arm based windows 8 device. It couldn't run regular windows software, everything went through the windows store.

[nitinkarole]

Great Info!! Many thnx for this IMP insight into Chips industry!

[JigilJigil]

CNBC should also do similar videos on Applied Materials, Lam research, KLA, .... as they are behind the scene key players of chips manufacturing.

[annasharova]

This strategy is great and what I loved is seeing your fabulous security to operate without any hesitation and without fear. I'm going to practice your strategy. New subscriber!

[TheRuoweiwu]

the video should give a introduction of semiconductor history, stuff like CISC vs RISC, how intel kills RISC, why IBM PowerPC fails on RISC, how ARM rides success on Apple's I series

[brhwvmo]

This is amazing! Very detailed and helpful. Thank you🦑

[odhiambo]

i love CNBC for providing such informative materials

[JudgeFredd]

Makes me remember the Acorn computers in the 80s - same company