SHARES in chip designer ARM Holdings rocketed almost seven per cent yesterday after Microsoft unveiled its latest round of software running on its processors.
Microsoft showcased the new version of its Internet Explorer browser running on an ARM-designed chip.
The demonstration followed a similar announcement earlier this year that Microsoft would use ARM processors in a new, low-powered version of the Windows operating system.
Microsoft is keen to work with Cambridge-based ARM in a bid to gain traction in the next generation of mobile devices such as smartphones and tablets.
However, the developments have technology analysts speculating that ARM could soon break into the PC market – an area traditionally dominated by Intel – opening up a potentially lucrative new revenue stream for the firm.
ARM has already cornered the market for low power-usage chips for mobile devices but has been unable to break into the laptop and desktop markets.
Morgan Stanley responded by issuing a positive note on ARM. Analyst Francois Meunier said: “We are positively surprised that software development is already well advanced. Bears on ARM argue that Windows on ARM could be late and/or unstable, which appears not to be the case. ARM continues to make faster inroads in the PC market than Intel in tablets and smartphones.”
ARM’s shares closed 6.8 per cent up at 598p, recouping losses suffered after Intel said it will introduce a rival processor for tablet computers.