This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributors Thomas Potter and Elijah Buell.Analyst’s Disclosure: I/we h ...

Core Insights - Arm Holdings has experienced a significant stock price surge of 134% year-to-date, followed by a recent decline of approximately 16% within a month, raising questions about potential buying opportunities or underlying difficulties [3][4]. Company Overview - Arm operates under a unique licensing model, focusing on licensing CPU architectures rather than manufacturing chips, which provides predictable revenue streams, reduced capital expenditure, and a focus on continuous innovation [4][5]. - The company has established a dominant position in the mobile market and is making strong inroads into high-growth sectors such as AI, IoT, and the automotive industry [4][5]. Financial Performance - In Q2 FY2025, Arm reported total revenue of $844 million, a 4.7% year-over-year increase, surpassing analyst expectations of $810.03 million [8]. - Royalty revenue surged by 23% to $514 million, driven by the adoption of the Armv9 architecture in smartphones [8]. - Conversely, licensing and other revenue declined by 15% to $330 million, attributed to the timing of large licensing deals [9]. - Non-GAAP diluted EPS reached $0.30, exceeding forecasts of $0.26, while operating income was $326 million, with an operating margin contraction to 38.6% from 47.6% year-over-year [9]. Market Dynamics - The semiconductor industry is undergoing significant changes, with surging demand for AI processing power tempered by supply chain constraints and a global economic slowdown affecting consumer spending [5][6]. - Geopolitical factors, including trade tensions and export controls, add complexity to the market environment for companies like Arm [5][6]. Analyst Sentiment - Analyst consensus remains a Moderate Buy, with price targets ranging from $100 to $190, and an average target of $147.95, indicating a potential upside of approximately 16% from the current price [10][14]. - The stock trades at a high trailing P/E ratio of 213.40, suggesting that the market has high expectations for future growth, which could lead to significant downside risks if earnings growth disappoints [11][12]. Investment Considerations - The recent price correction presents a complex investment scenario, with strong fundamentals suggesting long-term potential, but high valuation and recent volatility warrant careful consideration [12][15]. - For long-term investors with high risk tolerance, the dip may present a compelling opportunity, while those with lower risk tolerance may prefer to wait for a more favorable entry point [14][15].

The sellers have not only overshot their targets but have done so at the worst possible time.While the broad market may be uncomfortably near record highs right now, this isn't the case for every stock. Some tickers not only didn't get swept higher by the recent marketwide rally, but they are trading down from their peak prices. Fortunately, it's likely for reasons that won't last.Here are three discounted growth stocks you might want to consider buying while they're still trading at sale prices. Their long ...

There is no doubt that British chipmaking IP company Arm Holdings (NASDAQ: ARM ) is a strong beneficiary of the broader AI spending that remains elevated in the infrastructure layer, be it in the data center or inUttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as ...

Nvidia (NVDA -3.26%) first disclosed a stake in fellow semiconductor company Arm Holdings (ARM -5.59%) in the fourth quarter of 2023. The position was valued at $147 million at the time, but a recently filed Form 13F shows the position is now worth more than $280 million and accounts for about 65% of Nvidia's $433 million stock portfolio.To be clear, Nvidia has not added to its stake this year. Instead, Arm shares have surged on expectations that the company will benefit from artificial intelligence (AI). I ...

Shares of Arm Holdings plc (ARM) have experienced a notable decline, down 10.7% in the past month, while the broader industry has risen 14.2%.In the most recent trading session, ARM closed at $136.35, which is 28% below its 52-week high of $188.75. Despite the recent dip, ARM's stock has still surged an impressive 81% year to date, indicating that the current downturn may be part of a market correction.Image Source: Zacks Investment ResearchWith this recent drop in ARM's share price, investors might be wond ...

This company plays an important role in the global chip market and recently delivered better-than-expected results.Arm Holdings (ARM 0.93%) stock has been in sizzling form on the stock market in 2024, rising nearly 90% as of this writing thanks to a string of solid results in recent quarters that have bested Wall Street's expectations, and the company's latest quarterly results have further boosted investors' confidence in this British company's growth prospects.Arm released fiscal 2025 second-quarter resul ...

Arm posted modest growth in its recent earnings report, but there's a good reason for that.Arm Holdings (ARM -0.61%) has been one of the biggest winners in the artificial intelligence (AI) boom. The company was late to the party, going public in September 2023, nearly a year after ChatGPT launched, but the stock has tripled from its initial public offering (IPO) price.Arm is a semiconductor company, and it makes money by licensing chip designs, typically for CPUs, to companies like Nvidia, and collects roya ...

The semiconductor industry has surged alongside the rise of artificial intelligence (AI), positioning companies like Arm Holdings (NASDAQ: ARM) to benefit from increased demand. Known for its energy-efficient chip designs, Arm dominates the mobile device market and is now seeing heightened interest in its architectures as power-intensive AI applications continue to rise. ARM stock year-to-date price. Source: Google FinanceARM, currently trading at $148 with a year-to-date gain of 115%, reflects the appeal o ...

Key TakeawaysShares of Arm Holdings rallied Thursday, reversing losses in late-Wednesday trading after the company's results landed.The chip designer beat expectations with its revenue and earnings, but its full-year sales outlook underwhelmed.Analysts at Barclays raised their price target, calling for double-digit growth next year. Arm Holdings (ARM) shares climbed Thursday, reversing course after the stock initially dipped following the company’s fiscal second-quarter earnings results.  The chip designer ...