The stocks of Arm Holdings, a leading semiconductor patent company and the latest debutant on the stock market, have significantly risen recently due to the growing popularity of artificial intelligence technology. After the release of their latest quarterly report, Arm’s financial results have greatly increased in value in just a few days.
Arm is known for supporting Apple in designing modern integrated circuits for iPhones and the M series chips for MacBooks. Competing companies also aim to have similar integrated circuits, suggesting that Arm may enter a new phase of growth in the market.
As AI technology develops, so do the applications of Arm’s integrated circuits. Currently, they are used in devices such as cars, intelligent factory machinery, and medical equipment. Due to the growing applications in the new era of artificial intelligence, Arm has raised its financial forecasts for the current fiscal year.
Investors are pleased with the initial success of Arm’s return to the stock market in autumn 2023, particularly Softbank Group, which acquired Arm for $32 billion in 2016. Currently, Softbank holds over 90% of Arm’s stocks, with a market value of over $150 billion.
In its latest report, Arm indicated that its leading integrated circuit patents could further gain a significant market share in the semiconductor market. While Arm is already a dominant player in the smartphone segment, it is also striving to capture new markets such as cloud computing and data centers, where Intel processors have had an advantage for decades.
Although the prospects for Arm seem promising, caution should still be exercised when considering the stock’s value, which has recently surged. Arm’s shares currently cost nearly 85 times more based on Wall Street analysts’ forecasts for next year’s results.
I still cannot guarantee whether it is worth buying Arm’s stocks at the moment. However, the development of AI technology is crucial for the future growth of the company. Therefore, it is important to monitor the market situation and stay up-to-date with the latest information, even if now may not be the best time to purchase Arm Holdings stocks.
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The source of the article is from the blog mgz.com.tw