Get started
Arm Holdings plcArm Holdings plcArm Holdings plc

Arm Holdings plc

No trades
See on Supercharts
Overview Financials News
Ideas
Discussions Technicals Forecast Seasonals Options

ARM trade ideas

ARM Holdings Surges Over 45% on Strong AI Chip ForecastsIn a staggering surge, Arm Holdings ( NASDAQ:ARM ), the British tech giant famed for its semiconductor designs, witnessed a remarkable uptick of over 45% in its stock value on Thursday. This meteoric rise was propelled by bullish forecasts, as clientele gear up to fashion cutting-edge chips tailored for artificial intelligence (AI) applications. With the quest for AI-powered devices intensifying, Arm stands at the forefront, poised to reap the rewards of this burgeoning market. Embracing the AI Revolution Arm's ascent stems from its pivotal role in furnishing blueprints and intellectual property crucial for crafting the chips omnipresent in today's mobile phones, notably Apple's iconic devices. The company's trajectory has been deeply intertwined with the surge in demand for AI-centric technologies, with customers increasingly gravitating towards Arm's offerings to fuel their innovation in this domain. Unveiling a Paradigm Shift Arm's executives unveiled a strategic shift, highlighting the surge in clientele opting for Arm-based central processors in tandem with Nvidia's chips for AI-centric endeavors in data centers. Moreover, Arm's foray into developing AI-enabled laptops and smartphones underscores its commitment to pioneering advancements in consumer electronics. By leveraging its unique model of creating and licensing semiconductor designs, Arm has managed to scale rapidly while maintaining a lean operational footprint. Supercharging Growth Through AI Investment pundits underscore the symbiotic relationship between Arm and the AI boom, emphasizing how the company's revenue streams are poised for exponential growth fueled by the AI revolution. Notably, Arm's ability to deliver substantial royalty and licensing revenue reflects its adaptability and resilience in harnessing emerging technological trends. Market Dynamics and Valuation Amidst this fervor, market dynamics come into play, with Arm's valuation reflecting its elevated standing in the tech landscape. Trading at 56.46 times its 12-month forward earnings estimates, Arm's valuation surpasses that of industry stalwarts like Nvidia and Advanced Micro Devices. However, its low-float status renders it susceptible to pronounced market fluctuations, underscoring the need for cautious investor scrutiny amidst this period of exuberance. In essence, Arm Holdings' ( NASDAQ:ARM ) remarkable surge epitomizes the symbiotic relationship between technological innovation and market dynamism, as it harnesses the power of AI to propel itself into uncharted territories of growth and prosperity.
NASDAQ:ARMLong
by DEXWireNews
ARM: Good Share, Bad DerivativeOverview Arm Holdings PLC ( NASDAQ:ARM ) recently had its IPO back in September 2023. Since then it has bounced around between $46-$78 and I think it's gearing for a rally. Unfortunately there is not much room for a confident technical analysis because of ARM's minimal chart history but I believe this company is definitely worth adding to the Watchlist. ARM supplies semiconductor technology and has made it a company mission to lower carbon emissions. From my understanding they are attempting to lower their technology's carbon footprint by maximizing the processing power of their chips per every one watt of energy. Imagine this as the equivalent of increasing a vehicle's total miles per gallon (MPG). I have come under the impression that their technology is delivered to a plethora of companies including NVIDIA and Google who, in turn, use it to develop A.I. projects. It is this aspect that makes me speculatively bullish on the company's outlook. Speculative Projections According to their official website ARM technology can be found in nearly every modern device and is used by "70% of the world's population." ARM's market cap currently rests around $69 billion USD which places it around 1B shares. Since its technology is fueling what is essentially an artificial intelligence bubble within the stock market, it is my personal opinion that a $500B market cap is reasonable if not conservative. This would place ARM's share price around $500 which is a 631% upside from the current share price of $68.34. If you read my other idea on NVIDIA, I've mentioned that outsourcing may become an issue for NASDAQ:NVDA and so I believe that ARM may be able to fill that vacuum should a semiconductor crisis ever occur. A catalyst like this would definitely have the potential for propelling the stock to new highs. Risk Management If picking a good company out of a lineup wasn't enough, now the potential gains to losses needs to be considered. For every dollar risked, I believe at least three dollars should be the reward. With ARM I believe those types of gains are possible however this is the one of those exceptions where I would consider holding shares instead of trading derivatives. I picked through several option contracts, specifically Calls, and noticed that Open Interest was severely lacking on most contracts except for a few expiring within 90 days. Typically 90 days would suffice however with the lack of trading patterns -- and a sense of direction -- I believe this makes derivative trading too risky for ARM. To top matters off, the contracts with high open interest (>1000) would potentially only deliver 1:1 at best case scenario. All that said, the lack of direction and amount of share value that would have to be gained within a short period of time leads me to believe that investing in ARM Calls would be reckless. The Calls worth owning and that have an expiration greater than 6 months out have a near non-existent Open Interest. While that could always change if ARM starts getting some attention from the market, this may lead to illiquidity and an inability to unload the contract. Fundamental Analysis Current ratio (current assets / current liabilities) = 4.33 * Any ratios under 1.00 are considered a financial risk. Retained earnings = $2.440B which was a slight decrease from $2.457B in March 2023. * Allows the company to invest in itself (repurchase shares, expand, etc) Net income 6 Months Ended September 30 = ($5M) loss * The majority of the loss appears to have come from escalated operating expenses within the second quarter. This is a drastic 101.5% decrease from September 30, 2022 which had a net income of $339M. I'm experiencing some difficulty interpreting the Q2 Earnings Call. I am a self-taught analyst and learn on-the-go so I will need to process this information more before coming to a confident conclusion on the fundamental analysis. However, it does seem that operating expenses increased significantly (approximately by 171.8%) in the second quarter alone. I will make sure to provide any updates to my findings as a comment on this idea.
NASDAQ:ARM
by Shepherd_Investor
3
ARM: $53 | Reset for Fresh Investors WAiTiNGMasa or Softbank's huge position is significant as it is forced to book GAiNS to cover other FUNDS that got rekt from bad deals the likes of WeWork Slack Katera Uber to name a few the press release or promo that Apple Nvivdia the rest taking a position is cool cool that if it goes below $30 expect these friendly competitors to upsize position for a potential Take Over for now we wait wait wait wait as NViDiA TOPPiNG or toppish of the Tech sector recently where its CEO and Snowflake were selling nvidia shares while doing the roadhsow entitled NViDiA SUmmit selling to the PUBLIC while smart money booking HUGE GAiNS
NASDAQ:ARM
by senyor
Patent Expirations And Competition May Limit ARM’s Market ShareKey points 1. ARM is a leader with a saturated number of customers limiting future growth. It’s in a highly competitive landscape and needs to innovate beyond patent expirations in the 2030s. 2. As a controlled entity of SoftBank, I expect the board to push for buybacks in a bid to maximize returns. 3. I expect SoftBank to slowly unload its stake, while ARM buys back their stock - this may initially sustain the price. Prospects Are Still Solid After IPO ARM designs and licenses processors to manufacturers, it is the engineering company behind the world’s CPUs. About 70% of the world’s population uses Arm-based products. More than 30 billion ARM-based chips (smartphones, small electronics, data centers, networking equipment) were shipped in FY '23, representing an approximately 70% increase since 2016. Most of ARM’s IP sales are in the United States, however a good combined portion are in East Asia, including China (PRC), Taiwan and South Korea. The business model of the company is to design ARM-chips and license them out to manufacturers. It sells the intellectual property behind chips, but doesn’t produce the hardware. This is an engineering-first company, with approximately 80% of global employees focused on research, design, and innovation. The company reaches scale with the ability to license out each CPU product to multiple companies. ARM is a high performing company, with a gross margin of 80% and operating margins of 25%. The company made $2.7 billion in revenues in 2022 that stagnated in the IPO year. Despite stagnating in its IPO year, it’s future prospects from here are still solid as demand for their IP continue to grow. But I don’t believe it’ll grow revenues as fast as analysts are expecting (14% per year). ARM’s Market Share May Suffer As Patents Expire Arm has an addressable market of $202.5 billion, and expects it to grow at a 6.8% annual rate to $246.6 billion by the end of 2025. The company estimates the aggregate value of chips containing Arm technology to be approx. $98.9 billion in 2022, representing 48.9% market share. This market share is large even for a market leader. Competitors and expiring patents can become significant forces driving down the market share for ARM in the future. Notably most of the key ARM patents are expected to expire in the 2030s: The expiration of these patents can open the door for more companies to design and manufacture ARM-based chips. Limited New Customer Growth, But Opportunities in Smart Devices More than 260 companies reported that they had shipped Arm-based chips in 2023, including: Mobile computing: Apple, Guangdong OPPO, Samsung, Vivo Mobile, Xiaomi. Cloud computing: AWS and Alibaba Industrial IoT: Cruise and Mercedes-Benz, Raspberry Pi, Schneider Electric, and Siemens. ARM also entered into a long-term agreement with Apple that extends beyond 2040 allowing the company to use Arm architecture for their CPUs. The customer base for ARM is well established, and the company is at a phase where it will have a harder time acquiring new customers, rather it will have to rely on industry growth and innovation in order to increase revenue. One of the highest-potential growth avenues for ARM is the smart devices vertical. ARM’s CPU architecture fits well in small devices, giving it an advantage over peers with larger CPUs. As compute power increases, it will become more practical for consumers to rely on mobile devices and wearables instead of larger devices for everyday needs, this has the potential to widen the TAM. Another growth avenue for the company is the market adoption of electronically rich vehicles and EVs as well as the capitalizing on government programs subsidizing EVs. Vehicles have an increasing number of processing demands both in central systems, and IoT linked sensors. Selling Pressure From SoftBank May Limit Price Appreciation ARM is a controlled entity owned by SoftBank Group with approximately 90.6% of their outstanding ordinary shares following the completion ARMs IPO. Arm’s Top Shareholders ARM’s IPO is pushed by SoftBank who is looking to cash-in on their investment or escape with minimal losses. One scenario is to expect a continuous selling from SoftBank, which means that there may be selling pressure for some time keeping price appreciation moderate until the stock flips to a diversified investor base.
NASDAQ:ARMLong
by DEXWireNews
ARM: Short setupARM IPO was one of the most obvious short play this year. The one-day pump was it and now time to short it out. So far, the bounce has been steady and choppy. I think $56.78 will be the local top for now. Right now, price has broken below the channel support, but there might be a bear trap rally back up around at $54. From there if price breaks below $53, it will be the next short setup. Stop loss right above the upcoming spike. Ultimately, I think it is a $25 stock, but will re-evaluate when time comes. Above $56.78, there might be another push up higher up to $62 level before it turns down again...
NASDAQ:ARMShort
by mukit1
ARM holdings - long at 51$ IPO priceARM´s IPO hype was only of short duration. Today the market have almost reached the original issue price of $51. Here I'm going to open a small long position (I will add longs after a consolidation or reversal). I expect the price to go up to the gap close. There I will put my take profit and also place a short order. Feel free to leave a comment or to share your ideas in the comments section Please hit the like button if you share or like this idea. Follow us and stay up to date/ don't miss new ideas Thanks for your support!
NASDAQ:ARMLong
by DK_Investment
🔥 ARM IPO: Worth the hype? Should I chase? What even is it?ARM DD: Before you read this, understand that trying to buy IPOs when they begin trading isn't guaranteed and if you market buy, you will get roasted. It's not good to chase IPOs. No matter if this is the next NASDAQ:AAPL NASDAQ:TSLA and NASDAQ:AMZN combined, do not chase and only make wise and calculated decisions while trading. I've been waiting for this IPO for a while. It's finally here. It might be the most over anticipated IPO in a while. Trade carefully. Do not chase blindly. Have a plan. Trade the plan. If it doesn't come, move on. If you learn something or want to trade with me, give me a follow & join my community. Thanks. IPO valued @ $55B. Around $51 per share. They are only releasing 9% of the total shares to the public. So it has a tiny float. SoftBank is the owner, they bought ARM 7 years ago. The floor for me is 40B USD valuation. Meaning, around $38.50 is support. Where did I get that number? NVDA was closing on buying ARM for 40B USD in 2020. NASDAQ:NVDA , NASDAQ:INTC , NASDAQ:AMD , NASDAQ:AAPL , NASDAQ:GOOG , TSM, Samsung, are all interested in investing in ARM. What does ARM do? ARM is not a chip manufacturer. ARM designs chips & system processors & holds patents to chips and they license their technology to other big tech like AAPL, NVDA. Hence, NVDA wanted to buy them for 40B USD. THE POSITIVES: SoftBank bought out someone's 25% stake in ARM recently. For 16B USD. That puts it at a FWB:64B valuation in their eyes. That means the owner of ARM expects ARM to surpass 64B USD. NVDA CEO loves ARM, but NVDA failed to acquire it. NVDA CEO has been selling NVDA. Around 150k shares this year. Last sale 14M USD on 9/11/23. IMO he's freeing up to buy ARM @ IPO. Remember SoftBank is a 90% owner. Everyone who wants it gets it at IPO. Yes, even NVDA CEO. The float is tiny, and asset managers . NYSE:TSM expressed interest of 100M USD investment This might be the most hyped IPO in a while. THE NEGATIVES: SoftBank is a known dumper. SoftBank bought ARM in 2016 for $32B. They tried flipping it in 2020 for 40B USD to NVDA. So they were happy with a 8B flip USD in 4 years. Sus. Shows signs that if ARM does well, they'll unload. Because SoftBank are known dumpers, once they dump one time, investors will get shook. Their net income is low. Under 550M. Their revenue is around $2.7B. Their net income dropped YoY. Again, I will evaluate if I'm buying this and post my entries/ exits in my community. Welcome to join. Stay tuned.
NASDAQ:ARMLong
by kingdips
17
ARM IPO- big price for questionable growthARM made .54 eps in 2022 and .51 eps in 2023. at 51 cents eps, its 124 PE. Revenue per share current is 2.60 revenue per share, giving a price to sales over 20 PS. Its unclear if ARM is growing sales and earnings at a rate that justifies the current premium. Possible multiples examples: if pe goes to: 20pe x .51 = 10.20 30pe x .51 =15.30 40pe x .51= 20.40 so clearly there is some high growth rate implied at the current price. Implied growth rate is in the 30% to 60 % annual growth range. If its not a grower, is it priced as a tech hedge? in case other firms buy it? From a value and growth investor perspective, the math doesnt add up.
NASDAQ:ARM
by optionfarmers
Secured +10% on ARM, kept under 1/2 position. ⚠️ LOW FLOATERDrop a like and follow to show your support! Thanks. For bulls and bears alike, remember this is a LOW FLOAT. If you are shorting this stock when shares are available to borrow, remember it has a 9.3% float, is the most anticipated IPO in a while, and has clients like NASDAQ:NVDA NASDAQ:AAPL NASDAQ:GOOG NASDAQ:AMD NASDAQ:INTC NYSE:TSM and the list goes on. That being said, if I see +10% in 10 minutes, I must sell at least 1/2 my position. Got in @ 55.XX, out at 61.XX right when I saw the 9% and 10% print. If it goes to 100, 200, 300, I really wouldn't care because I followed my rules. Good luck trading. Remember to create a plan and follow it. That's the only way you'll be a consistent trader. When there's not enough data, you can use a smaller time frame for reference. Example: Welcome to join my community. Link below.
NASDAQ:ARM
by kingdips
1