Arm and Qualcomm are heading to trial this week in Delaware after two years of legal disputes.The legal battle over a licensing agreement puts Arm in conflict with one of its largest customers.The trial could have big implications for the entire chip industry, from M&A to IP.A legal battle between two of the world's biggest chip companies, Arm and Qualcomm, is heading to trial this week — and its outcome could have wide-ranging consequences for the entire industry.Advertisement The jury trial in Delaware, ...

Arm Holdings plc (ARM) stock has almost doubled this year. Shares have seen a 97% rally, significantly outpacing the internet software industry’s 45% rally.The stock’s remarkable performance can be attributed to the ongoing excitement around advanced artificial intelligence (AI) software and the associated hardware. Moreover, investors in Arm are closely monitoring both the global and American economic landscapes. Image Source: Zacks Investment ResearchConsidering the persistent strength of ARM shares, inve ...

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The artificial intelligence (AI) stock craze, although it's moderated some in recent times, is a long-tail trend that began around two years ago. Many investors are understandably convinced that the technology is going to be ubiquitous before long, and they're still scrambling to find investments that might take good advantage of this trend. One of the more durable AI stock plays, U.K.-based ARM Holdings (ARM 0.69%), saw another professional researcher recently join the crowd of bulls tracking it. He thinks ...

Arm Holdings (ARM 2.95%) is one of the best-performing artificial intelligence (AI) stocks of the last year, trading up 119%.However, Arm doesn't make money the way most semiconductor stocks do. Instead of selling its products directly to customers, the company licenses its technology, primarily its CPU (central processing unit) architecture to partners like Nvidia and Apple. Then it collects royalties when the products containing those designs are sold, so licenses and royalties make up its two sources of ...

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributors Thomas Potter and Elijah Buell.Analyst’s Disclosure: I/we h ...

Core Insights - Arm Holdings has experienced a significant stock price surge of 134% year-to-date, followed by a recent decline of approximately 16% within a month, raising questions about potential buying opportunities or underlying difficulties [3][4]. Company Overview - Arm operates under a unique licensing model, focusing on licensing CPU architectures rather than manufacturing chips, which provides predictable revenue streams, reduced capital expenditure, and a focus on continuous innovation [4][5]. - The company has established a dominant position in the mobile market and is making strong inroads into high-growth sectors such as AI, IoT, and the automotive industry [4][5]. Financial Performance - In Q2 FY2025, Arm reported total revenue of $844 million, a 4.7% year-over-year increase, surpassing analyst expectations of $810.03 million [8]. - Royalty revenue surged by 23% to $514 million, driven by the adoption of the Armv9 architecture in smartphones [8]. - Conversely, licensing and other revenue declined by 15% to $330 million, attributed to the timing of large licensing deals [9]. - Non-GAAP diluted EPS reached $0.30, exceeding forecasts of $0.26, while operating income was $326 million, with an operating margin contraction to 38.6% from 47.6% year-over-year [9]. Market Dynamics - The semiconductor industry is undergoing significant changes, with surging demand for AI processing power tempered by supply chain constraints and a global economic slowdown affecting consumer spending [5][6]. - Geopolitical factors, including trade tensions and export controls, add complexity to the market environment for companies like Arm [5][6]. Analyst Sentiment - Analyst consensus remains a Moderate Buy, with price targets ranging from $100 to $190, and an average target of $147.95, indicating a potential upside of approximately 16% from the current price [10][14]. - The stock trades at a high trailing P/E ratio of 213.40, suggesting that the market has high expectations for future growth, which could lead to significant downside risks if earnings growth disappoints [11][12]. Investment Considerations - The recent price correction presents a complex investment scenario, with strong fundamentals suggesting long-term potential, but high valuation and recent volatility warrant careful consideration [12][15]. - For long-term investors with high risk tolerance, the dip may present a compelling opportunity, while those with lower risk tolerance may prefer to wait for a more favorable entry point [14][15].

The sellers have not only overshot their targets but have done so at the worst possible time.While the broad market may be uncomfortably near record highs right now, this isn't the case for every stock. Some tickers not only didn't get swept higher by the recent marketwide rally, but they are trading down from their peak prices. Fortunately, it's likely for reasons that won't last.Here are three discounted growth stocks you might want to consider buying while they're still trading at sale prices. Their long ...

There is no doubt that British chipmaking IP company Arm Holdings (NASDAQ: ARM ) is a strong beneficiary of the broader AI spending that remains elevated in the infrastructure layer, be it in the data center or inUttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as ...

Nvidia (NVDA -3.26%) first disclosed a stake in fellow semiconductor company Arm Holdings (ARM -5.59%) in the fourth quarter of 2023. The position was valued at $147 million at the time, but a recently filed Form 13F shows the position is now worth more than $280 million and accounts for about 65% of Nvidia's $433 million stock portfolio.To be clear, Nvidia has not added to its stake this year. Instead, Arm shares have surged on expectations that the company will benefit from artificial intelligence (AI). I ...