The best traders understand how investor and trader psychology can move stocks. If understood and applied correctly, technical analysis is a study of this psychology.The chart of Arm Holdings PLC – ADR ARM is no exception. That's why it's our Stock of the Day.The red line on the chart is called a Bollinger Band. It is two standard deviations above the 20-day moving average. According to statistics and probability theory, 95% of all trading should be within two standard deviations of the mean or average.This ...

Investment Rating and Core Views - The report assigns an **"Overweight"** rating to Arm (ARM O) based on its strong position in the AI era and its potential for revenue growth driven by its CSS model and royalty income [2][3] - Arm is expected to benefit from the expansion of downstream market demand and the increase in royalty rates, with projected revenues of $3 98B $4 86B and $6 05B for FY2025E FY2026E and FY2027E respectively [4] - The company's target market value for 2025 is estimated at $162 95B with a target price of $154 [4] Revenue and Profit Forecasts - Arm's revenue is expected to grow at a CAGR of 23% from FY2025E to FY2027E driven by both licensing and royalty income [4] - Non GAAP net profits are projected to be $1 53B $1 81B and $2 38B for FY2025E FY2026E and FY2027E respectively [4] - The company's royalty income is expected to grow at a double digit rate supported by diversified customer base and market applications [11] Market Position and Competitive Advantages - Arm dominates the smartphone market with a 99% market share and 40% of its royalty income coming from this segment [4] - The company's energy efficiency advantage is highlighted as a key factor in its success in mobile and AI PC markets with Arm based chips consuming 30% less power than x86 chips [4] - Arm's CSS model is expected to drive higher royalty rates and market penetration in data centers and automotive electronics [4] Licensing and Royalty Income Breakdown - Licensing income is expected to grow due to the shift towards subscription based models (ATA and AFA) with projected licensing revenues of $1 79B $2 23B and $2 76B for FY2025E FY2026E and FY2027E respectively [9] - Royalty income is driven by the adoption of Arm v9 architecture and the expansion of AI enabled devices with smartphone royalty income expected to grow at an 18% CAGR from FY2024 to FY2027 [10] Growth Drivers in Key Markets - **Smartphones**: AI driven smartphone upgrades and the adoption of Arm v9 architecture are expected to boost royalty income [10] - **AI PCs**: Arm's energy efficiency is seen as a key advantage in the AI PC market with market share expected to grow from 14% to 25% by 2027 [13] - **Data Centers**: Arm's market share in cloud computing is expected to grow driven by partnerships with AWS Microsoft and others [14] - **Automotive**: The rise of electric vehicles and autonomous driving is expected to drive a 30% CAGR in automotive royalty income from FY2024 to FY2027 [15] Valuation and Financial Metrics - The report uses a DCF valuation method with a WACC of 13 2% and a perpetual growth rate of 5% to arrive at a target market value of $162 95B for 2025 [17][19] - Arm's forward P/E for FY2025 is estimated at 105x with a target price of $151 based on its growth prospects and market position [21]

Key TakeawaysRaymond James initiated coverage of Arm Holdings with an "overweight" rating and a price target of $160.It was the second time this week that analysts praised Arm, with Morgan Stanley earlier making the stock its new "Top Pick."Both Raymond James and Morgan Stanley pointed to Arm's strength in generative artificial intelligence. Arm Holdings' (ARM) U.S.-listed shares rose Friday, extending a run of gains after an analyst started coverage of the chip-design company's stock with an upbeat rating. ...

Arm saw more analyst love, this time from Raymond James.Shares of semiconductor architecture company Arm Holdings (ARM 5.83%) rallied again today, up another 5.4% as of 12:43 p.m. ET.Arm had already seen a wave of analyst upgrades this week, but got even more positive news today, this time via a bullish initiation from analysts at Raymond James. An AI uplift across end marketsRaymond James started coverage on Arm today, initiating the stock with a buy rating and a $160 price target.The analysts are bullish ...

Cloudflare, MicroStrategy, and Arm could still be millionaire-maker stocks.Many investors consider $1 million in savings to be a solid benchmark to reach by retirement age. And yet, according to the latest data from the Federal Reserve, American retirees between the ages of 65 and 74 have accumulated a median nest egg of just $409,900.A lot of Americans are falling short of that million-dollar mark because they didn't invest enough of their savings in ways that grew the principal significantly. Over the pas ...

Key TakeawaysArm Holdings was awarded its latest "Top Pick" rating by Morgan Stanley, which cited demand for the chip designer's artificial intelligence (AI) products.The Morgan Stanley analysts pointed to Arm's part in the technology industry shift to edge AI.Morgan Stanley has an "overweight" rating on Arm's U.S.-traded shares, with a $175 price target.Arm's stock soared Wednesday after the release of the report. Arm Holdings (ARM) shares jumped Wednesday after Morgan Stanley analysts named the chip desig ...

Shares of Arm Holdings plc (ARM) have seen a significant drop, falling 15.5% over the past three months compared with the 0.6% decline of the broader industry. However, despite this recent decline, Arm's stock has experienced an impressive 69.3% gain year to date, suggesting that the current pullback may just be part of a broader correction. Image Source: Zacks Investment ResearchIn its most recent trading session, ARM closed at $127.22, which is 33% lower than its 52-week high of $188.75. Additionally, the ...

Key TakeawaysShares in Arm Holdings will likely remain in focus on Tuesday after the stock surged yesterday following a report that the iPhone 16 will run on a chip based on the British company’s design. Although the stock has found buying interest this month around the 200-day moving average, it remains susceptible to further selling while trading under the closely-watched 50-day moving average.Investors should monitor key support levels on Arm's chart at $94 and $78, while watching important resistance le ...

Warren East, former CEO of Rolls Royce and Arm, speaking at a tech event in London on June 13, 2022.CAMBRIDGE, England — The U.K. is doing a bad job of commercializing technology businesses globally and needs a mindset shift from the investor community to win on the world stage, a former CEO of British chip design firm Arm said Tuesday.In a keynote speech at Cambridge Tech Week, Warren East, who led Arm between 1994 and 2013, said that there have been criticisms that lackluster growth and poor rates of GDP ...

How to Use the 200-day Moving AverageMost amateur investors suffer from “paralysis by analysis.” These investors pollute their screens with too many technical indicators and backward-looking macro data, losing the forest through the trees. From my own experience, the most valuable change I made from my early investing days to today is to simplify. Rather than seeking to add indicators, strive to remove them and only keep the most powerful tools in your investing toolbox.The most powerful indicator I have fo ...