Eventually, reality will catch up with this overhyped tech company.With shares up by a whopping 37% year to date, Arm Holdings (ARM 3.78%) is one of many technology companies that have received significant attention because of their potential in artificial intelligence (AI). But unlike alternatives like Nvidia, the hype surrounding Arm Holdings hasn't materialized into significant business growth. Let's dig deeper into what the next five years could have in store for the company.Why is Arm Holdings so popul ...

Results by one of the standard-bearers for the AI movement set the stage for a broader pullback in the space.There's no denying that recent advances in artificial intelligence (AI) have been a secular tailwind driving the market higher since early 2023. Businesses and investors alike are keen to profit from the potential of these advanced algorithms to unleash a wave of employee productivity. Despite that potential, these changes will occur over years and decades, not weeks and months.With that as a backdro ...

Nvidia bought this stock when it went public last fall.While there haven't been a lot of tech IPOs over the past year, there is one that clearly stands out: Arm Holdings (ARM 4.11%). The company debuted in September, returning to the public markets after going private in 2016. The stock has been strong since its IPO, up over 85% from its IPO price. However, the stock has pulled back recently, creating a more attractive entry point.What makes Arm special?Arm's architecture forms the basis of how central proc ...

These AI-related stocks rebounded on the back of massive AI spending plans from big tech giants.Shares of AI-related stocks Arm Holdings (ARM 3.53%), SoundHound AI (SOUN 4.45%), and Bigbear.ai (BBAI 6.63%) rallied this week, appreciating 15.4%, 21.7%, and 22.8% on the week, respectively, as of 12:13 p.m. ET, Friday, according to data from S&P Global Market .There wasn't much in the way of company-specific news for these three names this week. However, the positive commentary from several Magnificent Seven t ...

As the days pass and the market slowdown continues, many analysts are wondering if the artificial intelligence (AI) bubble has finally popped. From a logical perspective, several companies have disproportionately benefited from the AI moniker and related marketing. However, a deeper question remains, even as price corrections sweep across the AI giants and their affiliates. What companies currently offer overvalued tech stocks to sell if the bubble bursts more dramatically than expected?This question stems ...

Developments involving another key player in AI helped boost others in the space.Investing in the latest developments in artificial intelligence (AI) has been a wild ride over the past year or so. However, over the past few weeks, investors have had that sinking feeling as many of the stocks in the space lost altitude. The combination of a rapid rise in stock prices and uncertainty heading into earnings season led to the downfall, though many believe the decline to be temporary. Market watchers have been lo ...

Rome wasn't built in a day, and the AI revolution will take years to come to fruition.Market watchers were beginning to think that nothing could stop the bull market rally, driven by excitement about the possibilities of artificial intelligence (AI). The past couple of weeks has been a stark reminder of the market's tendency for occasional declines before heading higher.For example, after reaching new heights earlier this month, the Nasdaq Composite has fallen about 7% from its peak (as of market close on F ...

Last Friday saw an absolute bloodbath for some of the market’s hottest AI stocks. Market darling Nvidia (NASDAQ:NVDA) nosedived 10% in a single session. Super Micro Computer (NASDAQ:SMCI) tanked more than 23% as the firm stayed quiet on its earnings pre-announcement. Indeed, the reaction seems just a tad overdone. A missed pre-announcement seems to have been taken for a major quarterly disappointment. That’s how high expectations were for a red-hot AI data center stock that has run up triple-digit percentag ...

Shares have cooled off, falling 30% after soaring out of the IPO gate.Last year, chip design company Arm Holdings (ARM -16.90%) was one of Wall Street's hottest initial public offerings. Shares have corrected recently after soaring out of the gates on hype over its artificial intelligence (AI)-related tailwinds. Today, the stock trades nearly 30% off its high.The company designs products that serve as the foundation of modern semiconductors; roughly half of the world's chips use designs owned by Arm. An inc ...

A scare from Super Micro Computer sent the AI sector spiraling.Shares of Arm Holdings (ARM -17.95%) were taking a dive today, getting hit for the third day in a row on disappointing news on the artificial intelligence (AI) front.After ASML and Taiwan Semiconductor Manufacturing both fell on their earnings reports on Wednesday and Thursday, dragging down Arm and other AI stocks, today Super Micro Computer (SMCI -23.31%) shares plunged after one analyst observed that the company failed to pre-report revenue, ...