This is The Takeaway from today's Morning Brief, which you can sign up to receive in your inbox every morning along with: What we're watching What we're reading Economic data releases and earnings If you are looking to be consoled after 25% in value was sliced off your software stock holdings this week, then click out of this and go about your day. Because I'm not here to offer up sloppy kisses and warm hugs. I'm in a mood to dish out some pain on two fronts. One is to you — the investors I love so ...

Core Insights - Arm Holdings has a unique business model that involves licensing CPU designs and earning royalty revenue from sold products, which is often misunderstood by the stock market [1] - The company's stock experienced volatility following earnings reports, initially falling due to concerns over declining smartphone production but later rebounding [2] - Despite challenges in the smartphone sector, Arm's exposure is less significant than perceived, as lower-end chip production cuts by partners like Mediatek affect royalty revenue less than newer designs [3] Financial Performance - Arm reported a 26% increase in revenue for the third quarter, although it does not match the explosive growth seen in other AI stocks like Nvidia [4] - Research and development spending surged by 46% to $512 million, indicating a strong commitment to innovation and growth opportunities [6] - The company anticipates that R&D spending will outpace revenue growth in the near term, but this investment is expected to yield higher royalty rates from newer products [9] Market Position and Growth Potential - Arm is experiencing significant growth in the data center market, with revenue more than doubling year-over-year, and aims to capture 50% of the CPU market share among top hyperscalers by year-end [10] - The company is well-positioned to benefit from the ongoing AI revolution through new products, data center growth, and increased royalty rates [11]

We recently published 12 Stocks Jim Cramer Talked About. Arm Holdings PLC (NASDAQ:ARM) is one of the stocks that Jim Cramer talked about. Chip design firm Arm Holdings PLC (NASDAQ:ARM)’s shares are down by 30% over the past year and are up by 1.7% year-to-date. In late January, Susquehanna upgraded the shares to Positive from Neutral and kept a $150 share price target. The financial firm cited the AI chip industry as the reason behind its optimism. It commented that Arm Holdings PLC (NASDAQ:ARM)’s partner ...

Core Insights - The emergence of Agentic AI, particularly through tools like Anthropic's Claude Code, is causing significant shifts in the software and data center industries, leading to a notable sell-off in software stocks [1][2] Group 1: Impact of Agentic AI - Claude Code is predicted to account for over 20% of daily code commits on GitHub by year-end, a substantial increase from the current 4%, marking a pivotal moment in AI development [2] - The transition from manual coding to "vibecoding," where code is generated through natural language prompts, is expected to accelerate the deployment of AI agents that can operate independently [3] Group 2: Companies Benefiting from Agentic AI - Arm Holdings is positioned to benefit from the growth of Agentic AI, as it is known for licensing CPU instruction sets, which are becoming increasingly vital for handling workloads in this new AI landscape [5][6] - The demand for CPUs is anticipated to rise significantly due to their role as agents in orchestrating tasks, which could lead to increased revenue for Arm [6] Group 3: Financial Performance and Future Outlook - Arm's data center royalty revenue has more than doubled year-over-year, with expectations that its data center business will surpass mobile as the largest revenue category in the coming years [7] - Despite a guidance for slower revenue growth in the fiscal fourth quarter, the strong performance in the third quarter reassures investors about Arm's growth potential [7] - The company is also expected to benefit from increasing royalty rates as it introduces newer products like Armv9, enhancing its revenue streams [10]

Back to Market on Close. I'm Marley Caden alongside Sam Bodis in New York. We are seeing shares of ARM Holdings extending its post earning gains with the stock up about 17% on the week.The company topped estimates on the top and bottom line saw royalty revenue jump 27% and license and other revenue increased 25% yearover-year. I want to bring Sam back into the conversation and welcome our guest. Joining us today, the EVP and CFO of ARM Holding, Jason Child.Jason, thank you for taking the time on an exciting ...

After gaining yesterday following its fiscal third-quarter earnings report on Wednesday night, Arm Holdings (NASDAQ: ARM) was moving higher for a second straight session as the momentum from the post-earnings rally continued, the tech sector bounced back after a days-long slide, and Amazon became the latest hyperscaler to give a blockbuster forecast for capital expenditures for 2026. As of 1:39 p.m. ET, the stock was up 10.2% on the news. Where to invest $1,000 right now? Our analyst team just revealed wh ...

Key Takeaways ARM delivered a fourth straight earnings beat, with adjusted EPS up 7.5% year over year on strong execution.ARM revenues climbed 26.4% to $1.24 billion, topping expectations and signaling sustained operating momentum.ARM margins dipped due to reinvestment, but management sees growth and earnings levels as repeatable.Arm Holdings (ARM) reported adjusted earnings of 43 cents per share for the third quarter of fiscal 2026, exceeding the Zacks Consensus Estimate by 4.9% and increasing 7.5% from th ...

格隆汇2月6日｜费城半导体指数大涨4.2%。其中，Arm涨超7%，迈威尔科技、AMD涨超6%，泛林集 团、柯磊、英伟达、应用材料、台积电涨超5%，英特尔、博通涨超4%，阿斯麦涨超3%。 | 代码 | 名称 | 涨跌幅 √ | | --- | --- | --- | | ARM | Arm Holdings | 7.24% | | COHR | Coherent | 6.94% | | MRVL | 迈威尔科技 | 6.47% | | AMD | 美国超微公司 | 6.39% | | LRCX | 泛林集团 | 5.95% | | KLAC | 科雷 | 5.62% | | ENTG | 英特格 | 6.05% | | NVDA | 英伟达 | 5.43% | | MPWR | Monolithic Power Sys | 5.64% | | AMAT | 应用材料 | 5.25% | | NVMI | Nova | 5.47% | | TSM | 台积电 | 5.02% | | INTC | 英特尔 | 4.80% | | AVGO | 博通 | 4.53% | | MTSI | MACOM Technolo ...

Core Viewpoint - ARM's data center business is expected to grow significantly in the next 2 to 3 years, potentially matching or exceeding the smartphone business, which currently accounts for 40% to 45% of total revenue [1][8]. Group 1: Financial Performance and Guidance - Data center revenue growth is currently outpacing other business segments, with its share expected to rise from over 15% towards 20% [1][8]. - The company has raised its fiscal year 2026 revenue guidance from an initial "at least 20%" to a midpoint of 22%, exceeding previous expectations [1][12]. - For fiscal year 2027, while no formal guidance is provided, maintaining a 20% growth rate is deemed reasonable [1][12]. Group 2: Research and Development - R&D spending is increasing at a rate higher than revenue growth, with expectations of a slowdown in R&D expenditure growth after Q1 of the following year [1][14]. - The company anticipates that the growth rate of R&D spending will stabilize, moving towards a more moderate pace [1][14]. Group 3: Market Dynamics and AI Integration - ARM views the recent volatility in the software sector as typical during major technological shifts, emphasizing that AI will not replace chips but rather coexist with them [2][15]. - The deep integration of AI within enterprises is still in its early stages, with ARM itself not fully transformed yet [2][15]. - The demand for computing power remains substantial, and ARM is focused on long-term opportunities in this evolving landscape [2][15]. Group 4: CPU Role in Data Centers - The shift in data centers is moving from training to inference workloads, with CPUs becoming increasingly important due to their efficiency and low latency [3][10]. - The trend of increasing CPU core counts is expected to continue as AI workloads evolve, benefiting ARM's positioning in the market [3][10]. Group 5: Royalty Revenue and Market Impact - Despite anticipated declines in smartphone shipments, ARM expects minimal impact on royalty revenue due to a focus on high-end markets and the transition to newer architectures [4][5]. - The company estimates that even with a 20% drop in smartphone sales, the impact on royalty revenue would only be around 2% to 4% [5][9]. - ARM's royalty income is projected to remain robust, supported by growth in cloud AI and infrastructure business, which offsets potential risks from the mobile sector [4][5]. Group 6: Future Outlook and Strategic Initiatives - The CSS (Compute Subsystems) business is showing significant growth, with expectations that its contribution to royalty revenue will rise from around 15% to over 50% in the next 2 to 3 years [10][11]. - ARM is actively involved in developing new products and services, with future updates on fiscal year 2028 expected as plans are finalized [12][12].

We recently published 10 Stocks Withstanding Market Turbulence. Arm Holdings PLC (NASDAQ:ARM) was one of the best performers on Thursday. Arm Holdings grew its share prices by 5.70 percent on Thursday to close at $110.88 apiece, as investors loaded portfolios following news of record-breaking revenues in the third quarter of fiscal year 2026. In an updated report on Wednesday, Arm Holdings PLC (NASDAQ:ARM) said that revenues surged by 26 percent to $1.2 billion from $983 million in the same period a yea ...