49% Jump in Royalty Revenue at Imagination Technologies Group plc (IMG)

To answer this challenge, Imagination bought troubled CPU designer MIPS earlier this year in an attempt to boost the company’s CPU development and hopefully gain access to some new clients and markets.

Virtual land grab
The world is becoming more connected and mobile computing (via smartphones, tablets, wearable devices) is growing rapidly. We’re also approaching the age of the Internet of Things (where your refrigerator talks to your car to let you know you need to stop at the grocery store for milk and your thermostat tells the utility company you don’t need as much power because you’re on vacation), which means there is likely to be immense demand for the combination of powerful computing capability and low energy consumption that are hallmarks of the ARM and Imagination Technologies Group plc (LON:IMG) chip designs.

ARM won the first round with its dominance in mobile phones. Imagination notched a nice win with its presence in Apple Inc. (NASDAQ:AAPL) devices. Where we go from here could be interesting — for consumers and investors.

I don’t pretend to know what the future holds, but I’m pretty certain Imagination investors are in for some exciting times.

The article 49% Jump in Royalty Revenue at Imagination Technologies Group originally appeared on Fool.com is written by Nate Weisshaar.

Nate Weisshaar has no position in any stocks mentioned. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple, Imagination Technologies, and Intel.

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