Core Insights - Arm plans to transition from a chip designer to a chip manufacturer, with its first in-house chip expected to launch this summer [1] - Meta is reported to be one of the first customers for Arm's new chip, indicating a shift in Arm's business model [1][2] - The move could position Arm as a competitor to its existing customers, which include major tech companies [2] Business Strategy - SoftBank's founder, Masayoshi Son, aims to establish an AI infrastructure network, with Arm playing a central role in these plans [2] - Arm is a key technology partner in the Stargate AI infrastructure initiative led by SoftBank and OpenAI [2] Product Development - The new chip is anticipated to be a customizable central processing unit (CPU) for data centers, with manufacturing outsourced to another company [3] - Arm's Chief Commercial Officer previously declined to comment on rumors regarding the company's interest in chip manufacturing [3] Market Position - Arm holds a near-total monopoly in mobile device chip design and is exploring opportunities in the AI sector [4] - The company emphasizes its power-efficient design as a competitive advantage, particularly relevant for energy-intensive AI applications [4] Technical Specifications - Arm's CPU architecture is distinct from the x86 architecture, which is prevalent in most computers and servers [4] - The architecture is simpler, customizable, and energy-efficient, contributing to Arm's 99% market share in mobile devices [5] - Several major tech companies have adopted custom Arm-based chips, highlighting the architecture's growing acceptance [5]

Core Insights - Arm, a public semiconductor company majorly owned by SoftBank, will begin manufacturing its own chips this year after securing Meta as a high-profile enterprise customer [1][2] - The initial in-house chip is expected to be a CPU designed for large data center servers and will be customizable for various clients [1] - This marks a significant strategic shift for Arm, which traditionally licenses its chip designs to companies like Apple and Nvidia, potentially turning some existing customers into competitors [2] Company Strategy - The first in-house Arm chip is anticipated to be unveiled as early as this summer [2] - Arm will outsource the production of its chips, indicating a hybrid approach to manufacturing [1] Market Impact - The partnership with Meta signifies a new direction for Arm, as it moves from a licensing model to direct chip production, which could alter competitive dynamics in the semiconductor industry [2]

Core Insights - Arm shares increased by 5% following reports of developing its own chip and securing Meta as a customer [1] - Arm is creating a new product that will compete with its existing customers, moving beyond its traditional licensing model [2] - Arm has a reputation as a neutral player in the chip industry, serving major clients like Apple, Google, and Microsoft [3] Company Developments - Meta plans to spend up to $65 billion on capital expenditures for AI development, including purchasing chips from various suppliers [4] - Arm's new chip will serve as a central processor for servers, distinct from graphics processors used for heavy AI workloads [4] - Arm went public in 2023 with a market cap exceeding $173 billion, and its shares have risen nearly 29% in 2025 due to its role in AI systems [5] Market Opportunities - Arm's CEO highlighted significant planned data center spending from major companies: Google ($75 billion), Microsoft ($80 billion), and Meta ($60 billion) [6] - The Stargate initiative, which aims to invest up to $500 billion in AI infrastructure for OpenAI, presents additional opportunities for Arm [6]

Core Insights - The launch of DeepSeek, a Chinese AI start-up, has created significant disruption in the AI sector, leading to a sharp decline in stocks like Nvidia, which lost over $300 billion in value [1][3]. Company Impact - DeepSeek's open-source model reportedly achieved results comparable to OpenAI's ChatGPT at a much lower cost, with training expenses of only $5.5 million, raising concerns about its use of OpenAI's model without permission [2]. - Despite initial panic, Nvidia's stock remains 10% lower than its pre-DeepSeek levels, indicating ongoing market uncertainty [3]. - Arm Holdings' CEO expressed confidence in DeepSeek's potential to enhance efficiency in the AI industry, suggesting that it will drive overall compute demand and benefit Arm's business model [5]. Industry Trends - Major tech companies like Microsoft, Meta Platforms, Alphabet, and Amazon are expected to continue increasing capital expenditures on AI infrastructure, indicating a robust growth trajectory for the sector despite the emergence of DeepSeek [4]. - Arm's unique position in the market, with its chips being used across various devices from cloud to edge, positions it well to capitalize on the ongoing investment in AI and the disruption caused by DeepSeek [7][9]. - The development of technologies like Edge AI, which allows computing to occur on devices rather than in data centers, is expected to accelerate, benefiting Arm due to its dominance in low-power chip solutions [8][11]. Market Position - Arm's market share in cloud computing has increased from 9% in 2022 to 15% in 2024, showcasing its growing influence and potential for further expansion through partnerships with major cloud providers [9]. - The ongoing investment in AI is projected to continue until advancements like artificial general intelligence (AGI) are achieved, with DeepSeek's development not altering this trajectory [10].

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Imagine it's the turn of the 20th century. Henry Ford is hard at work scaling the manufacturing and distribution of the Model T. I offer you the opportunity to buy the sole producer of automobile axles in the world. FutureAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (ot ...

2025 年 2 月 8 日 行业研究 FY25Q3 业绩超预期，期待更多授权协议签署和 CSS 收入放量 ——ARM（ARM.O）FY2025Q3 业绩点评 要点 事件：FY25Q3 业绩超预期，略下调 FY2025 全年指引上限。1）FY25Q3 业绩 超预期。FY25Q3 营收 9.83 亿美元，YoY+19%，QoQ+17%，超过此前公司 9.2~9.7 亿美元指引区间上限，较市场预期的 9.47 亿美元高逾 4%；其中授权 收入 4.03 亿美元，YoY+14%；版税收入 5.8 亿美元，YoY+23%，系 CSS+v9 架构渗透、物联网业务改善。盈利方面，FY25Q3 Non-GAAP EPS 0.39 美元， YoY+26%，超过此前公司 0.32~0.36 美元指引区间上限，较市场预期的 0.34 美元高逾 15%。2）略下调 FY2025 全年指引上限。公司指引 FY25Q4 营收 11.75~12.75 亿美元，中值对应 YoY+32%，QoQ+25%，市场预期 12.28 亿美 元；Non-GAAP EPS 指引 0.48~0.56 美元，中值较市场预期的 0.526 美元低 1%。公司 ...

Share prices of Arm Holdings (ARM -2.96%) slipped despite the company posting record fiscal Q3 revenue. However, the stock is still off to a strong start to the year, up nearly 35% year to date as of this writing.Let's take a closer look at the semiconductor company's most recent results to see if the dip in price is a buying opportunity.Strong AI demandArm is currently still tied to the smartphone market, as its technology is incorporated into nearly all advanced smartphones in the world. However, its tech ...

Arm Holdings (ARM -3.34%) stock declined 3.3% on Thursday, following the leading central processing unit (CPU) chip designer's release on the prior afternoon of its report for the third quarter of its fiscal year 2025 (ended Dec. 31, 2024). Let's look at the Q3 report and then the stock's valuation to answer this question: Is Arm stock a buy?Why Arm stock dropped after the earnings releaseArm stock's modest post-earnings-release decline wasn't related to the quarter's results, as revenue and earnings both h ...

Currently leading research at Leverage Shares, I have longstanding professional experience with financial markets. All views are my own and I can assure you that I smile sometimes. M.S.F, M.B.A., IIT Chicago. My Substack where I dig *deep* into global business, market, Asia, culture, trends, etc.Please note: Leverage Shares is an ETP provider that offers daily-rebalanced products in leveraged/unleveraged/inverse/inverse leveraged factors. The company holds both long and short positions in a number of stocks ...