--- the subscriber area has no ads ---


ARM buyout implications and IoT +2


This morning's announcement that SoftBank will buy Arm is likely to be seen as a sign of the M&A trend in semiconductors kicking into high gear.  That's speculatively positive for these stocks that I cover:

The deal cites IoT opportunity as one of the main drivers.  I see that as an uncertain market with lots hype.  There will almost certainly be growth, but I think the opportunities tend to come in specific niches.  This opinion comes from thinking about what actually has to happen here, from a communications and computing standpoint.  Most of the devices that really could benefit from IoT will be powered in some way.  In the majority of cases where that is wired electrical power, there may already be established communications networks that can be leveraged.  Even when that's not the case, the very low data transfer rates may lend themselves to communication over power line applications which were developed long ago, but found to be not suitable for high bandwidth.  Of course some devices will be unpowered or off the grid, but how many, really, and how compelling will the need for IoT be in such cases?  When I ponder these questions, I wind up liking the sensor, low-power computing (like ARM) and maybe analytics providers better than the communications side.