Core Viewpoint - Arm reported better-than-expected Q2 results and raised its full-year guidance, leading to positive ratings from major Wall Street firms [1][2] Financial Performance - Arm's total revenue for Q2 of fiscal year 2026 increased by 34% to $1.14 billion, surpassing market expectations of $1.06 billion [1] - Operating profit surged by 155% year-over-year to $163 million, with an operating margin of 14.4%, significantly higher than the previous year's 7.6% [1] - Net profit rose by 122% to $238 million, and adjusted earnings per share were $0.39, exceeding the market forecast of $0.33 [1] Market Trends - The expansion of global AI data centers, driven by the demand for AI training and inference workloads, is fueling an unprecedented "ARM architecture wave" [1] - Major cloud computing companies like Amazon, Microsoft, and Google are accelerating the deployment of self-developed ARM architecture server CPUs [1] Future Guidance - For Q3, Arm expects revenue between $1.175 billion and $1.275 billion, with a midpoint of $1.225 billion, above the market expectation of $1.1 billion [1] - The company anticipates adjusted earnings per share of $0.41, also better than the market forecast of $0.35 [1] Analyst Ratings and Price Targets - Mizuho Securities maintained an "Outperform" rating and raised the target price from $180 to $190, citing strong Q2 results and improved Q3 guidance [2] - JPMorgan and Wells Fargo also raised their target prices to $180 and $195, respectively, while Deutsche Bank increased its target from $130 to $150 [2] - Jefferies raised its target price from $173 to $205, reflecting confidence in Arm's performance [2] - Needham maintained a "Hold" rating but adjusted its fourth-quarter expectations downward due to earlier recognition of mobile royalties and accelerated growth in data center royalties [2]

Core Insights - ARM's efficiency in computing platforms is approximately 50% higher than competing solutions, leading to significant adoption by major companies like NVIDIA, Amazon, Google, Microsoft, and Tesla [1][2] - The unprecedented demand for computing power is primarily based on ARM technology, contributing to over 100% year-on-year growth in the Neoverse business segment [1][2] - The Chinese market has shown strong performance with historical high demand, driven mainly by license revenue, including a large licensing deal [1][7] Financial Performance - In Q2, SoftBank-related revenue increased from $126 million to $178 million, a rise of $52 million, which serves as a future reference benchmark [5] - The revenue from SoftBank includes IP licensing and design services, with design services having a lower profit margin [5] Strategic Initiatives - ARM's acquisition of DreamBig Semiconductor is aimed at enhancing its Ethernet and DMA controller capabilities, which will expand its product offerings [3] - Collaboration with SoftBank on the Stargate project is expected to provide significant business opportunities in data center construction [3] Market Trends - The infrastructure business is growing at twice the average rate of other categories, with expectations of a 15% to 20% revenue share in ARM's royalty income [6] - The shift in data center computing from training to inference is anticipated, with strong demand for ARM's technologies in edge computing [7] Future Outlook - ARM maintains confidence in its future prospects based on current capital expenditures and the ongoing strong AI cycle [1][7] - The company plans to provide clearer guidance for Q4 based on its licensing reserves and the timing of large licensing deals [1][7]

Core Viewpoint - Morgan Stanley has raised the target price for Arm Holdings from $175 to $180 while maintaining an "overweight" rating [1] Group 1 - The adjustment in target price reflects positive sentiment towards Arm Holdings' performance and growth potential [1]

Summary of ARM Holdings Conference Call Company Overview - **Company**: ARM Holdings (ARM) - **Industry**: Semiconductors Key Financial Results - **Revenue**: ARM reported revenue of **$1.14 billion**, exceeding Goldman Sachs (GS) and Street estimates of **$1.06 billion** [2] - **Operating Margin**: Recorded at **41.1%**, significantly higher than GS and Street estimates of **36.0%** [2] - **Operating EPS**: Reported at **$0.39**, above GS and Street estimates of **$0.33** [2] - **Licensing Revenue**: Achieved **$515 million**, surpassing GS's estimate of **$473 million** and Street's estimate of **$474 million** [2] - **Royalty Revenue**: Reached **$620 million**, ahead of GS's estimate of **$586 million** and Street's estimate of **$585 million** [2] Guidance for FY3Q - **Revenue Guidance**: Midpoint guidance set at **$1.225 billion**, well above GS's estimate of **$1.09 billion** and Street's estimate of **$1.11 billion** [3] - **Operating Expense Guidance**: Projected at **$720 million**, exceeding GS's estimate of **$675 million** and Street's estimate of **$676 million** [3] - **Operating EPS Guidance**: Expected to be **$0.41**, above GS's estimate of **$0.34** and Street's estimate of **$0.35** [3] Market Expectations and Stock Performance - **Investor Sentiment**: The stock is expected to rise due to better-than-expected revenue and EPS guidance, driven by a recovery in royalty revenue [1] - **Focus Areas for Investors**: Key topics of interest include operational expenses, smartphone market recovery, Datacenter business updates, and contributions from v9 and CSS to royalty revenues [1] Price Target and Risks - **Price Target**: Set at **$150**, based on a multiple of **75x** normalized EPS estimate of **$2.00** [4] - **Risks**: - Slower transition from v8 to v9 and CSS [4] - Less traction in Datacenter business [4] - Faster traction for Compute Sub-Systems [4] - Emergence of new customer cohorts licensing ARM technology [4] Additional Insights - **Quarterly Growth**: Year-over-year revenue growth of **34.5%** and quarter-over-quarter growth of **7.8%** [7] - **Gross Margin**: Excluding stock-based compensation, gross margin was **98.2%**, slightly above estimates [7] - **Market Capitalization**: ARM's market cap stands at **$171.2 billion** [8] This summary encapsulates the key financial metrics, guidance, market expectations, and risks associated with ARM Holdings as discussed in the conference call.

Market Overview - Major U.S. indices experienced declines, with the Dow Jones down 398.7 points (0.84%) to 46,912.3, the Nasdaq down 445.81 points (1.9%) to 23,053.99, and the S&P 500 down 75.97 points (1.12%) to 6,720.32 [1] - European markets also saw declines, with Germany's DAX30 down 346.58 points (1.44%) to 23,702.29, the UK's FTSE 100 down 68.03 points (0.70%) to 9,709.05, and France's CAC40 down 109.46 points (1.36%) to 7,964.77 [2] Commodities - Crude oil prices fell slightly, with NYMEX light crude down $0.17 to $59.43 per barrel (0.29%) and Brent crude down $0.14 to $63.38 per barrel (0.22%) [2] Cryptocurrency - Bitcoin dropped over 2.5% to $101,211.6, while Ethereum fell over 3% to $3,320.34 [3] Precious Metals - Spot gold saw a minor decline of 0.05% to $3,977.22. The World Gold Council reported that global gold ETFs experienced a net inflow of $8.2 billion in October, raising total assets under management to a record high of $503 billion [4] Macroeconomic News - The Federal Reserve's Cleveland President, Harker, expressed opposition to further rate cuts, citing persistent inflation risks and a lack of compelling reasons for additional policy actions [5] - The Bank of England maintained its interest rate at 4%, but indicated that rate cuts may be forthcoming as inflation is expected to peak and stabilize slightly above 2% in the next two years [6] Company News - Google announced the upcoming launch of its most powerful AI chip, Ironwood, which is expected to be four times faster than its predecessor and is aimed at AI companies [7][8] - Former President Trump announced agreements with pharmaceutical companies Eli Lilly and Novo Nordisk to reduce the prices of popular weight loss drugs, with prices for some medications dropping by approximately $50 [9] - UBS adjusted its price targets for Arm from $200 to $195 and Qualcomm from $175 to $185 [10]

Core Insights - Stocks fell on Thursday as Wall Street focused on corporate earnings [2] Qualcomm - Qualcomm's stock fell 4.76% after reporting fiscal fourth-quarter adjusted earnings of $3 per share on revenue of $11.27 billion, which exceeded expectations. The company anticipates fiscal first-quarter adjusted profit between $3.30 and $3.50 per share, with revenue projected between $11.8 billion and $12.6 billion, surpassing consensus estimates [3][5] AppLovin - AppLovin's stock rose 2.47% after reporting third-quarter earnings of $2.45 per share, beating estimates by 7 cents. The company's ad revenue reached $1.41 billion, exceeding expectations of $1.34 billion and marking a 68% increase year-over-year. For the fourth quarter, AppLovin expects revenue between $1.57 billion and $1.6 billion, higher than the $1.55 billion estimate [4] Arm Holdings - Arm Holdings' stock fell 2.54% despite reporting fiscal second-quarter earnings that surpassed analyst forecasts. The company expects adjusted profit of 41 cents per share on revenue of $1.23 billion for the current third quarter, exceeding Wall Street's expectations of 35 cents per share and $1.11 billion in revenue [6] Marvell Technology - Marvell Technology's stock rose 0.96% after reports that SoftBank Group explored a potential takeover of the chip company. The acquisition was intended to merge Marvell with Arm, but no agreement was reached [7] Tesla - Tesla's stock declined 4.94% as shareholders prepared for a vote on CEO Elon Musk's pay package during the annual meeting. The vote is expected to pass, although Norway's sovereign-wealth fund has publicly stated it will vote against Musk's compensation [7] Moderna - Moderna's stock gained 4.2% after reporting better-than-expected quarterly results, with a loss of 51 cents per share, which was narrower than the anticipated loss of $2.12. Revenue for the quarter was $1.02 billion, exceeding the $880 million estimate [8] DuPont - DuPont's stock rose 0.2% after the company reduced its full-year net sales forecast to $6.84 billion from $6.865 billion. The board authorized $2 billion in stock repurchases and declared a quarterly dividend of 20 cents per share [9] Airlines - Delta Air Lines, United Airlines, and American Airlines saw declines of 0.7%, 1.6%, and 1.4%, respectively, due to a 10% reduction in flight capacity at major U.S. airports amid a government shutdown affecting air-traffic controllers [10] Robinhood Markets - Robinhood's stock fell 7.7% despite reporting third-quarter earnings and revenue above analysts' expectations. However, transaction-based revenue of $730 million, a 129% increase year-over-year, missed projections [11] Snap - Snap's stock surged 16% after narrowing its third-quarter loss and announcing a $400 million deal with AI company Perplexity to integrate its technology into Snapchat. Revenue rose 10% to $1.51 billion, surpassing estimates [12] Datadog - Datadog's stock surged 19% after reporting third-quarter adjusted earnings of 55 cents per share, exceeding estimates of 45 cents. Revenue climbed 28% to $886 million, beating forecasts of $854 million [13] Celsius Holdings - Celsius Holdings' stock sank 23% due to concerns over the transition of its newly acquired Alani Nu business into PepsiCo's distribution network, which may impact inventory movements [14] CarMax - CarMax's stock tumbled 13% after announcing the departure of its CEO, Bill Nash, effective December 1. The board member David McCreight will serve as interim president and CEO while a search for a permanent replacement is conducted [14] DoorDash - DoorDash's stock declined 16% after missing third-quarter earnings expectations and announcing plans to invest several hundred million dollars more in new initiatives and platform development in 2026 compared to 2025 [15] Duolingo - Duolingo's stock plummeted 27% after forecasting fourth-quarter bookings of $329.5 million to $335.5 million, falling short of Wall Street estimates [15] E.l.f. Beauty - E.l.f. Beauty's stock sank 32% after issuing full-year guidance below Wall Street expectations, projecting adjusted earnings of $2.80 to $2.85 per share on sales of $1.55 billion to $1.57 billion, while analysts forecasted adjusted earnings of $3.53 on revenue of $1.65 billion [16]

RT karbon 🐺🦊 (@basedkarbon)This is another part of the broken social contract.Boomers got to buy:AAPL IPO at $1.8b mcapMCD IPO at $33m mcapMSFT IPO at $780m mcapINTC IPO at $58m mcapHD IPO at $60m mcapNIKE IPO at $220 mcapAMZN IPO at $438m mcapEBAY IPO at $700m mcapAverage return 4175xLooking at the "good" IPOs millennials had access to (CART, BIRK, ARM, KYVO)....Average mcap was $20.6 BAverage return to date to 1.68%That average is being largely lifted by ARM which did a 10xA more median view did the other ...

Group 1: Layoffs and Job Market - Over 1 million people have been laid off in the US this year, marking a 65% increase compared to the same period in 2024 and 44% more than the total job cuts announced in all of last year [1] - In October, US employers cut more than 150,000 jobs, the largest reduction for the month in over 20 years, driven by technology and warehousing sectors [3][31] - The rise in layoffs is attributed to the adoption of artificial intelligence, slower consumer spending, and hiring freezes [7][85] Group 2: Market Reactions and Stock Performance - The stock market has reacted negatively to the surge in layoffs, with major indices like the Nasdaq falling by 1.9% and the S&P 500 down by 1.2% [5][17] - Concerns over the valuation of tech stocks have led to significant sell-offs, with over $420 billion wiped off the value of the largest seven US tech companies [6] - Notable declines in tech stocks include AMD down 7.1%, Intel down 3.8%, and Nvidia down 3.3% [4][5] Group 3: Economic Indicators and Predictions - The current job cuts are the highest since 2020, indicating a potential downturn in the economy [6] - The Bank of England has maintained interest rates at 4%, with expectations of potential cuts in the future depending on inflation trends [12][73] - Economic forecasts suggest that the unemployment rate in the UK could rise to 5.1% by spring next year, higher than previous predictions [70]

Market Performance - US stock markets experienced a significant drop on November 6, with the Dow Jones falling approximately 300 points, the Nasdaq declining by 1.6%, and the S&P 500 decreasing by about 1% [2] - Concerns over high valuations in AI-related stocks intensified, leading to continued weakness in this sector [3] Employment Data - The number of layoffs in the US surged in October, with a total of 153,074 layoffs reported, marking an increase of 183% from September and nearly three times the number from the same month last year, making it the highest October figure since 2022 [3] - Revelio Labs reported a decrease of 9,100 in non-farm employment for October, following a prior increase of 33,000 [3] Stock Movements - AI-related stocks saw notable declines, with Qualcomm down 4%, AMD down 7%, and Oracle down approximately 4% [3] - Nvidia and Meta also experienced declines, reflecting the broader trend in the tech sector [3] Legislative Developments - Investors are closely monitoring developments in Washington regarding the legality of tariffs imposed by the Trump administration, with expectations rising that the Supreme Court may overturn these tariffs, potentially boosting the stock market [5] Chinese Stocks - Chinese stocks opened with gains exceeding 2%, although the gains fluctuated throughout the session, with Xpeng Motors showing a significant increase of 8.77% [5][8] Federal Reserve Insights - Chicago Fed President Austan Goolsbee expressed concerns about the lack of inflation data during the government shutdown, indicating a cautious approach to interest rate cuts [10] - Goolsbee highlighted that core service inflation's slight rebound raises concerns about persistent price pressures, which tend to be more sticky [10]

Core Insights - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]