We've been tracking the apparent bursting of the ‘ARM bubble' for a month or so now. Our feeling is that, no matter how hot the smartphone/tablet sector is right now, it's hard to recommend owning a share that has a P/E ratio of 80.
Since we wrote that, ARM's share price has been in gradual decline, but last week that was reversed by a rare foray into the public domain from some of its most senior people.
The key story was one associating ARM with Google TV. It looked like a significant coup for Intel - and its embedded chip ambitions - to be named the launch chip partner of Google's Internet TV initiative, and ARM was forced to ally itself to a much lower-profile project. But speaking at a conference last week, CEO Warren East strongly implied ARM's technical dialogue with Google encompasses Google TV
We've had several conversations with other technology companies who expect to get a chance to participate in Google TV once the launch partners have had their fun, and it would be unlike Google not to open the platform up to anyone who fancies it. So there isn't too much new news here, but it seems to have been enough to drive up ARM's share price, along with a bit of dissing of Intel's business model.
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