The Motley Fool·2025-03-25 08:00Arm Holdings - Arm designs CPUs and subsystems for custom chip development in markets like mobile devices and data centers, licensing its intellectual property rather than selling chips directly [3][6] - Arm holds over 99% market share in smartphones and 67% in other mobile devices, with a growing presence in personal computers and data centers due to performance improvements [4][5] - In Q3 fiscal 2025, Arm's revenue increased by 19% to $983 million, driven by AI demand, while non-GAAP net income rose 26% to $0.39 per diluted share [6] - Wall Street estimates a 31% annual increase in Arm's adjusted earnings through fiscal 2026, although the current valuation at 85 times adjusted earnings appears expensive [7] Upstart Holdings - Upstart utilizes AI to enhance lending profitability, with over 100 banks and credit unions using its platform for various consumer credit products [8] - The company's machine learning models analyze thousands of variables for credit decisions, resulting in more accurate approvals and lower interest rates for borrowers [9] - Upstart's Q4 results showed a 56% revenue increase to $219 million, with non-GAAP net income improving to $0.29 per diluted share, up from a loss in the previous year [10][11] - The median target price among analysts for Upstart is $86.50 per share, indicating a 57% upside from its current price around $55 [10] - Upstart's total addressable market exceeds $2 trillion in loan originations, but its transaction volume was less than $6 billion in 2024, indicating significant growth potential [11][12]