Core Viewpoint - Arm Holdings' stock experienced a significant increase of 30% last month, driven by a positive trend in the semiconductor industry and a resurgence in the AI trade, despite the absence of a single news catalyst [1][7]. Group 1: Stock Performance - Arm's stock outperformed the S&P 500 throughout the month, reflecting a steady upward trajectory [2]. - The stock surged during the last week of June, aligning with broader market gains as geopolitical tensions eased and inflation remained low [7]. Group 2: Company-Specific Developments - Arm is recognized for its power-efficient CPU architecture and maintains strong partnerships with major tech companies like Apple and Nvidia, providing extensive exposure across the tech sector [4]. - A notable spike in Arm's stock occurred following Apple's WWDC, where new features were announced, leading to a 4.1% increase in Apple's stock on a high trading volume day [6]. Group 3: Economic Sensitivity and Valuation - Arm's business is sensitive to economic cycles, which can influence demand; the company responded positively to signs of resilience in the U.S. economy, even amid new tariffs [5]. - Despite its competitive advantages in technology, Arm's stock is considered to have a stretched valuation, trading at a price-to-sales ratio of 41, suggesting that investors may want to wait for a more favorable entry point [9].