Key Takeaways Arm is emerging as the backbone of efficient AI computing from edge devices to data centers.Neoverse V-Series CPUs and Meta collaboration highlight Arm's push into advanced AI infrastructure.Arm's stock is up 14.5% YTD, trades at 27x forward sales, and fiscal 2026 estimates have risen.Arm Holdings plc (ARM) is no longer just a chip architect; it has become the backbone of energy-efficient AI computing, shaping how intelligence scales from tiny edge devices to hyperscale data centers. Its RISC- ...

Core Viewpoint - The ongoing trade tensions between the United States and China, particularly regarding rare earths, pose significant risks to companies like Intel, which heavily rely on these materials for production [1][2][4]. Group 1: Trade Tensions and Rare Earths - The recent announcement of a 90-day pause in heightened tariffs between the U.S. and China does not resolve the underlying trade strife [1]. - Intel's growth plans could be severely impacted if trade tensions escalate again, particularly due to its reliance on rare earths sourced from China [2][4]. Group 2: Intel's Business and Financials - Intel reported a 2% year-over-year decline in revenue for 2024 and has initiated a restructuring plan to reduce expenses, including staff downsizing [6]. - The company anticipates high-volume production of its Intel 18A process node in 2025, supported by approximately $8 billion in funding from the CHIPS Act [7]. - In 2024, Intel's data center and AI (DCAI) business generated $16.1 billion, accounting for 30.4% of consolidated sales, which could also be adversely affected by a constrained supply of rare earths [10]. Group 3: Risks and Market Sentiment - Intel identifies geopolitical tensions and supply chain risks related to rare earths as significant factors that could adversely impact its business [4]. - Despite potential risks, Intel's shares are currently trading at a premium, with a cash flow multiple of 14 compared to a five-year average of 7, leading to cautious sentiment among investors [11].