Market update (noon): Intel results send ARM rocketing
Joe McGrath, 14 January 2011
Prices correct as at 1230 hrs.
News that Intel Corporation had reported a rise in demand for its computer server chips acted as a catalyst for ARM Holdings this morning.
Intel declared that 2010 was the best year in the company’s history, with sales up 24 per cent on last year at £27.5 billion with its final quarter margin at a dazzling 67.5 per cent.
ARM witnessed another stunning day as a result, rocketing 7.4 per cent to 541.5 pence as investors anticipated similar news from the Cambridge-based chip maker, with analysts predicting demand likely to increase yet further.
There was also analyst speculation about the possibility of ARM broadening its product range as a result of its growing domination in the market.
Utility International Power was the next highest gain on the top performers’ list, albeit with a gain of a much more modest 1.5 per cent to 416.3 pence.
Events and publishing concern Reed Elsevier was the third highest climber, nudging just ahead at 0.6 per cent to 547 pence.
At the other end of the table it was the mining stocks that saw a complete lack of appetite from investors.
Anglo American led the descent, dropping 4 per cent at 3,275 pence while Xstrata ditched 3.9 per cent to 1,455 pence. Fresnillo was also down 3.8 per cent at 1,499 pence.
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