Investors seem to be rotating out of the top AI chip stock and into its lesser-known peer.Nvidia (NVDA -6.08%) has delighted its shareholders with a return of nearly 1,000% since the start of 2023, but Thursday brought investors a rare post-earnings drop as the AI chip leader closed down 6.4% for the day.While the company beat headline estimates on the top and bottom lines, the sell-off in the stock seemed to have more to do with valuation and growth concerns.Nvidia is now worth $3 trillion, meaning the ups ...

Nvidia and Arm Holdings are the two best semiconductor stocks to buy for exposure to the fast-growing AI space.Artificial intelligence (AI) is poised to be one of the biggest disruptive secular growth trends of all time. Most sources project the global AI market to have a compound annual growth rate (CAGR) in the 30% to 40% range through 2030, with 2030 market sizes ranging from over $800 billion to more than $1 trillion.The AI revolution had been underway in recent years but just kicked into high gear in e ...

Sundry Photography In this analysis, we covered Arm Holdings plc (NASDAQ:ARM), a semiconductor company based in the UK that specializes in the development of intellectual property for processors. The company has a high revenue CAGR of 18% and thus, we examine whether its growth outlook could be sustainable. First, we examined the company’s business model by analyzing its revenue breakdown and analyzed its growth performance in terms of shipments and royalty fees per shipment as well as its number of lice ...

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 ...