Arm Holdings is emerging as a top opportunity in the artificial intelligence (AI) chip realm.Some of the biggest beneficiaries of the artificial intelligence (AI) boom are semiconductor stocks. That includes Arm Holdings (ARM 0.96%), which plays an important role in the chip space by developing and licensing central processing units (CPUs). Although Arm may not be as highly publicized as Nvidia or Advanced Micro Devices, I would not sleep on this company.Let's dig into Arm's business and assess why now look ...

Though the AI trade has increasingly brought about skeptics, several companies deeply involved, including Palantir (PLTR) and Arm Holdings (ARM) , have helped prove the doubters wrong, posting robust quarterly releases that have broken records and reflected serious demand.  Let’s take a closer look at each.Arm Reports Record Royalty RevenueARM architects, develops, and licenses high-performance, low-cost, and energy-efficient CPU products and related technology, on which many of the world's leading semicond ...

Sundry Photography Arm Holdings (NASDAQ:ARM) is the third-best performer of 2024 in AI-related semiconductor stocks with a 56% YTD return, behind only Nvidia and Taiwan Semiconductor. The stock is a market favorite as Arm’s heterogenous compute design has created a monopoly in mobile, primarily, yet Arm’s RISC architecture is also found in PCs, powers sensors and supercomputers. In total, over 280 billion Arm-based chips have been shipped dating back to the 1980s. The latest Arm v9 architecture offers s ...

Core Viewpoint - Elliott Investment Management, led by billionaire Paul Singer, has shifted its investment focus from Nvidia to Arm Holdings, indicating a strategic pivot in the tech sector [1][5]. Group 1: Investment Strategy - Elliott has been involved in discussions with Starbucks and has taken an active role in Southwest Airlines, showcasing its aggressive investment approach [1]. - The fund sold its shares in Nvidia, citing concerns over AI being "overhyped" and the technology's energy inefficiency, while initiating a new position in Arm Holdings [1][4]. - Elliott's investment in Arm may also be linked to its stake in Softbank, which owns approximately 90% of Arm, suggesting a broader strategy involving both companies [5][6]. Group 2: Arm Holdings Overview - Arm's technology is integral to nearly all smartphones globally, differentiating its business model from Nvidia by licensing technology rather than designing its own chips [2]. - The company has transitioned to a subscription model for its intellectual property, with 33 customers on the Arm Total Access platform and 241 on the Arm Flexible Access platform as of Q2 [3]. - Arm aims to capture at least 50% of the Windows-based PC market within five years and has seen a 28% growth in the automotive sector in Q2 [3]. Group 3: AI and Market Position - Despite Elliott's skepticism about AI, Arm is benefiting from increased licensing in AI data centers, indicating a nuanced position in the AI landscape [4]. - Arm collaborates with Nvidia on the Grace Hopper chip, integrating Arm-based CPUs with Nvidia GPUs, and has seen its technology adopted by major companies like Alphabet and Amazon for new data center chips [4]. - Arm's stock trades at a forward P/E ratio of 63.5 based on 2025 estimates, reflecting a premium valuation compared to Nvidia, but its business model allows for long-term royalty income [6]. Group 4: Market Sentiment - Following a recent pullback in Arm's stock price, it is viewed as more attractive, although a cautious approach is recommended for future investments due to its high valuation [7].

Market downturns are rare opportunities to buy excellent stocks that rarely come cheap.Stocks generally don't move in a straight line. Yes, countless technology and artificial intelligence (AI) stocks have enjoyed a pretty straight path to higher prices since the beginning of last year. But recent volatility has reminded investors that even AI stocks are prone to a sell-off. Are you a long-term investor looking to own great stocks for years at a time? If so, a sell-off is a gift!There are businesses behind ...

Is there an artificial intelligence (AI) stock bubble that’s only starting to burst, or is the latest sell-off nothing more than a healthy, much-needed correction? That’s the big question on investors’ minds as they contemplate buying the dip in previously heated growth plays that are starting to show signs of bottoming out.Of course, only time will tell if the weakness in the names that began back in July is the start of something far worse. Given the real productivity gains to be had from AI, though, I’m ...

These growing companies could multiply your money over the next decade.Artificial intelligence (AI) is estimated to add trillions in value to the global economy through cost savings and productivity gains in the coming years. The returns for investors could be very lucrative, if you own the right stocks.While some AI stocks will be volatile as Wall Street sorts out the winners and losers, investors can stack the odds in their favor by investing in profitable tech leaders that are already seeing growing dema ...

In the past month, shares of Arm Holdings plc (ARM) have declined 33.4% compared with a 10.1% decline in the broader industry.Looking beyond this one-month performance, ARM’s stock has dipped 2.5% over the past six months but remains up 55.7% year to date, suggesting that the current downturn is part of a broader correction phase.Image Source: Zacks Investment ResearchThe stock closed at $117 in its last trading session, 38% below its 52-week high of $188.75. Additionally, ARM is trading below its 50-day mo ...

Arm has terrific results and an awesome business model; is it enough?Semiconductors are among the most essential technologies on the planet. They enable everything from thermostats to smartphones to autonomous vehicles. Now, artificial intelligence (AI) demands even higher performance. These high-performance products are so important that there is geopolitical tension between the U.S. and China related to import and export bans and Taiwan, where most of the world's semiconductors are manufactured.Because of ...

For many investors, the conversation around the semiconductor industry isn’t always the clearest. Some companies are fabricators, others are designers, and then there’s Arm Holdings (NASDAQ:ARM) which is a designer for designers, which puts ARM stock in an interesting position. That’s because Arm sells the chipset instructions for some of the most sought-after designs for processors that go into devices that need to be energy efficient like cellphones, tablets and laptops. This has resulted in a set of mark ...