But Pierre Ferragu, senior analyst with Sanford C. Bernstein & Co. LLC in London, warns in a recent report that Intel’s deal with Motorola and Lenovo exposes two negative implications for ARM. First, the deal shows that Intel can be competitive in the market for low-cost, low-power chips. Second, the Street has become increasingly uncomfortable with ARM’s high valuation, and this deal might trigger broader negative sentiment. Mr. Ferragu rates ARM’s stock “underperform.”
Investors have grown too optimistic about the size of ARM’s potential market and misunderstand the company’s real potential in the area of laptops, PCs and servers, he cautions.
There's a VERY good conference call on Intel's website from last year. It was done by Wells Fargo and address ARM, specifically, and Server/Server market share,future Server share, etc.. I highly recommend listening to it.