Latest news with #ArmHoldings
Yahoo
3 days ago
- Business
- Yahoo
3 Brilliant AI Stocks to Buy Before July Ends
Key Points Arm Holdings' goal of controlling 50% of the data center processor design market seemed crazy earlier this year. Now it doesn't. The use of new materials in the simplest of technologies can make a world of difference in terms of performance. Voice-based artificial intelligence tech is finally getting traction, largely thanks to SoundHound AI's years of developmental work and savvy acquisitions. 10 stocks we like better than Arm Holdings › Artificial intelligence mania is still going strong, readily rekindling bullish interest in many of the industry's stocks while continuing to lift others. Investors understand that most of these tickers are already well overvalued. But investors also know these stocks' potential upside is just too promising to worry (much) about valuations just yet. Sometimes you just have to hold your nose and dive in. To this end, while there are certainly far more AI stocks to consider adding to your portfolio, if you can stomach the risk and volatility, there's some urgency to the idea of stepping into one or more of three of the industry's lower-profile names. Here's a closer look at each one of the three in question. Arm Holdings In its early days when modern artificial intelligence was more of an experiment than a commercialized business, power consumption wasn't a concern. Data centers were small enough for their operating costs to not really matter. Developers simply wanted to see if they could make the idea work. And it does. Now that the AI industry entered its full commercialization phase, though, data center operators are shocked at the sheer size of their utility bills. The U.S. Department of Energy reports that data centers consumed 4.4% of the United States' total electricity production in 2023, for perspective, and is expected to be as much as 12% by 2028. The DOE also explains (in more practical and tangible terms) that the typical data center consumes between 10 and 50 times the amount of power needed by an equally sized ordinary office building. Enter Arm Holdings (NASDAQ: ARM). You may know Arm Holdings as a semiconductor stock, and from a certain perspective, it is. It doesn't actually make chips, though. Rather, it designs them and then licenses its designs to other manufacturers and developers that specifically need its power-efficient IP. The A18 processor found in Apple's newest AI-capable iPhones are Arm-based chips, for example, is manufactured by Taiwan Semiconductor Manufacturing. It's not just about preserving smartphones' battery life. Arm's processing architecture can offer power efficiency to automobiles, laptops, and yes, even data centers, where its processors are using up to 60% less electricity than comparable conventional processing chips. Its share of this market is still in the single digits. But with its chips' efficiency now being touted by partner Amazon Web Services, Arm's goal of controlling 50% of the global data center market by the end of this year doesn't exactly seem far-fetched. These won't all necessarily be artificial intelligence data centers. But certainly some of them will be. Arm stock may look and feel overpriced and overvalued here. And perhaps it is. Yet with shares still trading where they were a year ago, at least for the time being the window of opportunity is open to interested investors. Navitas Semiconductor Navitas Semiconductor's (NASDAQ: NVTS) growth strategy is simple enough -- take an older technology and make it better, and better suited for more modern applications. In this case the technology in question is the silicon found in all modern computerized electronics, as well as many simple motorized tools and heavy that requires electricity to function, including power grids, solar power equipment, and data center power supplies. Navitas Semiconductor's silicon carbide replaces ordinary silicon with something that's not only more durable, but can more cost-effectively handle the higher power loads that equipment like electric vehicles, the aforementioned solar power systems, and data centers require or produce. The company's gallium nitride power integrated circuitry, on the other hand, allows for the compact combination of multiple microcircuits that might normally require more than one discrete component being embedded into a single circuit board, reducing its energy consumption. That's why this tech is well suited for smaller electronics like smartphone chargers or televisions, or even smartphones now that they're starting to handle generative AI duties from the devices themselves. It's not the easiest stock to own, for the record. These are relatively new technologies, and while they're drawing interest (including from AI titan Nvidia), they aren't producing consistent least not yet. Navitas is also still unprofitable, adding to the stock's volatility. The company's making forward progress toward profitability, though, as the need for its solutions becomes increasingly inevitable. Following this year's likely sizable revenue setback compared to an unusual revenue surge in the same quarter of 2024, analysts are looking for top-line growth of 51% next year and another 39% improvement the year after that. The market should continue rewarding the promise of this progress, even if only erratically. SoundHound AI Finally, add SoundHound AI (NASDAQ: SOUN) to your list of brilliant AI stocks to consider before July comes to a close. In its infancy, computerized voice-recognition wasn't great. It could distinguish spoken words and sounds from a narrow range of established options, allowing it to handle basic self-service phone calls. But that was about it. SoundHound AI helped usher in the next generation of voice-based artificial intelligence technology. By melding this voice recognition with deeper machine-learning that allows for a contextual and even predictive understanding of spoken words, this company's solutions are suited for work like fast-food order-taking, conversational customer service, onboard assistance in automobiles, and consumer electronics that don't just take commands, but understand requests that may be unusually voiced. There's been no shortage of drama here, nor volatility for the stock. For instance, earlier this month Piper Sandler's James Fish affirmed his long-term optimism on SoundHound's tech, but questioned whether or not the company would be able to easily navigate the near-term transition to a subscription-based revenue model as well as yet another acquisition integration. The corresponding downgrade comes just two months after Piper Sandler initiated coverage of the company's stock at an overweight rating, serving as a microcosm of the pushing and pulling that SoundHound and SoundHound shares have experienced since it became publicly traded back in 2022. The fact is, however, SoundHound AI's future has never been more promising than it is right now. Several product/platform developments are finally getting traction, boosted by multiple acquisitions that the market didn't always cheer. Next year's projected revenue growth of 27% is a hint of what should be the long-term norm here now that it's got all the technological prices of its puzzle put together. In this vein, an outlook from industry research outfit suggests that the global voice-based AI customer service agent business is poised to grow at an average annual rate of 35% through 2033, while the bigger conversational AI market will grow at a solid pace of 24% per year through 2035. SoundHound's positioned to capture at least its fair share of this the stock's recent bullishness suggests investors are finally catching on to. Should you buy stock in Arm Holdings right now? Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Arm Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. 3 Brilliant AI Stocks to Buy Before July Ends was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
21-07-2025
- Business
- Bloomberg
Arm-Backed Chipmaker Ambiq Micro Starts Marketing US IPO
Ambiq Micro Inc., a maker of ultra-low power semiconductors for artificial intelligence applications, is seeking to raise as much as $85 million from an initial public offering. The Austin-based company, which counts Arm Holdings Plc among its investors, plans to market 3.4 million shares at $22 to $25 each, according to its filing early Monday with the US Securities and Exchange Commission.
Yahoo
21-07-2025
- Business
- Yahoo
Own ARM stock? This Is the 1 Thing to Watch Now
Key Points Arm has emerged as an AI winner since its IPO in 2023. The company has a unique business model, licensing its CPU designs and earning royalty revenue. Its new Compute Subsystems (CSS) product appears to be growing rapidly. 10 stocks we like better than Arm Holdings › Arm Holdings (NASDAQ: ARM) has emerged as one of the top semiconductor and artificial intelligence (AI) stocks on the market today. After going public in 2023, the stock soared as investors realized it had more exposure to AI than they initially believed. Today, Arm stock is expensive, trading at a price-to-sales ratio of 38, but it also has a robust set of competitive advantages that set it apart from any other stock in its industry. There are two things that are unique about Arm. First, its business model is distinct from any other tech company. Rather than designing chips, the company licenses its CPU architecture to companies like Apple and Nvidia. It earns revenue when it sells those licenses, and it earns royalty revenue when the products containing those licenses are sold. That gives the company a more resilient revenue stream than most semiconductor companies, and the royalties it earns tend to last for years. It's also led to high margins. The other unique component of Arm's business is its CPU architecture, which is known for being more power-efficient than the competing x86 alternative made by Intel and AMD. That's led to Arm gaining essentially universal adoption in the smartphone market with 99% market share, and it's also made it a popular choice for the rapidly growing data center market, where efficiency is also prized due to the extraordinary energy demand to run AI models. Arm just finished its fiscal 2025 year, but there is one product line in particular that investors should watch as it kicks off a new fiscal year. Arm Compute Subsystems Arm has historically licensed its CPU architecture, but its latest iteration, Compute Subsystems (CSS), takes that strategy one step further. Arm subsystems are pre-verified and pre-integrated configurations of its technology that help accelerate the development of Arm-based systems. Last year, the company introduced its first CSS targeted at the infrastructure space, supporting AI and data centers, and the company is seeing rapid adoption of CSS. Growth of CSS not only strengthens its business model by giving customers a more complete model, but it also brings in more money for Arm as royalty rates for CSS are about double what they are for v9, its latest CPU design. In the fourth quarter, it sold its first license for automotive CSS, tapping into another massive market for the company. CSS is especially valuable to the company because it accelerates time-to-market for Arm's customers, allowing them to bring a product to market faster, creating more value for them, which means Arm can collect revenue faster. The royalty rates are significantly higher as well, allowing the company to earn more money without needing growth in the overall device market. Arm is also moving into other new territory like ASIC custom chips, showing it's expanding its addressable market in other ways. Where Arm stands today Arm stock fell in the fiscal fourth quarter, reported back in May, after management didn't give guidance for the next fiscal year. That was due to the more general uncertainty around tariffs, and the fact that Arm's customers have also not given guidance. First-quarter guidance called for roughly 13% growth, though its quarter-to-quarter growth rate is volatile due to the nature of licensing deals. However, that uncertainty shouldn't be mistaken for weakness as the company's momentum in AI remains strong, especially as it moves into new product lines like CSS and ASIC. Compute Subsystems could hold the key for the company's growth in the coming years, especially as AI drives growing demand for designs. With double the royalty rate and a faster time to market, CSS could drive the next leg of growth for the company. Should you invest $1,000 in Arm Holdings right now? Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Arm Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Jeremy Bowman has positions in Arm Holdings and Nvidia. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy. Own ARM stock? This Is the 1 Thing to Watch Now was originally published by The Motley Fool
Yahoo
20-07-2025
- Business
- Yahoo
Down 16%, Should You Buy the Dip on Arm Holdings?
Key Points Arm stock is trading 16% off all-time highs hit last summer. Arm's valuation remains lofty when compared to other stocks in the technology sector. Arm has what it takes to generate enough growth to justify its premium valuation. 10 stocks we like better than Arm Holdings › Arm Holdings (NASDAQ: ARM) stock has underperformed the technology sector of late. It is trading down about 16% from its all-time high set in mid-2024, while the tech-focused Nasdaq Composite index is trading at or near all-time highs despite enduring a tough time earlier this year. However, a closer look at Arm's stock price chart tells us that it is regaining its mojo once again. Shares of the company have jumped 56% in the past three months, outpacing the Nasdaq Composite's 28% gains. Importantly, the stock could get a solid boost when it releases its fiscal 2026 first-quarter results after the market closes on July 30. Now, Arm stock is trading at a more attractive valuation than it was a year ago, thanks to the 16% dip. That's why now may be a good time to start accumulating Arm, as it seems primed for more upside in the second half of 2025 and beyond. Arm's robust growth has made the stock relatively cheaper Even though Arm's stock price has headed south in the past year, the company's earnings have been growing at an impressive pace in the past 18 months. This is evident from the following chart. This is why Arm can now be bought at a relatively cheaper valuation. It is trading at 193 times earnings right now, which is almost a third of its price-to-earnings ratio at the end of June 2024. Additionally, its forward earnings multiple of 79 tells us that analysts are expecting a nice jump in the company's earnings going forward. Of course, Arm's valuation remains at lofty levels when we consider that the U.S. technology sector has an average earnings multiple of 51. But the company is capable of justifying its valuation by clocking healthy levels of earnings growth, thanks to the fast-growing adoption of its latest chip architecture that's contributing positively toward its margins. The company is capable of delivering terrific bottom-line growth Arm licenses its chip architecture and intellectual properties (IP) to semiconductor companies that use them to design chips. The company gets its revenue from licensing agreements that it enters into with customers, along with royalties that it gets from each chip that is manufactured using its design. The good part is that the demand for Arm's IP and chip architecture has improved following the advent of artificial intelligence (AI). That's not surprising, as processors designed using Arm's architecture are said to be better at tackling advanced AI workloads while being power-efficient at the same time, as per third-party analysis. This explains why there has been a whopping 14x jump in the number of customers using Arm-based chips in data centers in just four years. Cloud computing giants such as Alphabet's Google, Amazon, and Microsoft are developing custom AI processors for their data centers using Arm's IP. The company has also seen a significant jump of 12x in the number of start-ups using its architecture for designing chips in the past four years. Arm's terrific progress in the data center market can also be attributed to a big spike in the number of applications that processors developed using its architecture can run. The company points out that the number of applications that can run on Arm-based chips has doubled since 2021, on the back of a 1.5x jump in the number of developers making those applications. As such, it's easy to see why Arm is confident of increasing its share of data center central processing units (CPUs) to 50% by the end of 2025, which would be more than triple last year's reading. The British company also expects to corner 50% of the PC CPU market by 2029, which would be a sixfold jump compared to last year. Even better, the royalties that Arm commands for its latest Armv9 architecture are reportedly double those of the previous generation. This is the reason why there has been a nice jump in the company's margin profile in the past 18 months. Arm is capable of clocking healthy earnings growth levels going forward, and that's precisely what analysts are expecting from the company. However, don't be surprised to see Arm's earnings growing at a faster pace than analysts' expectations, thanks to a combination of market share gains and the higher royalty rates for its AI-focused chip designs. Investors looking to add a growth stock to their portfolios can consider buying Arm, as the argument above indicates that it is set to soar higher on the back of an improvement in its earnings power. Should you invest $1,000 in Arm Holdings right now? Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Arm Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Down 16%, Should You Buy the Dip on Arm Holdings? was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Globe and Mail
19-07-2025
- Business
- Globe and Mail
Down 16%, Should You Buy the Dip on Arm Holdings?
Key Points Arm stock is trading 16% off all-time highs hit last summer. Arm's valuation remains lofty when compared to other stocks in the technology sector. Arm has what it takes to generate enough growth to justify its premium valuation. 10 stocks we like better than Arm Holdings › Arm Holdings (NASDAQ: ARM) stock has underperformed the technology sector of late. It is trading down about 16% from its all-time high set in mid-2024, while the tech-focused Nasdaq Composite index is trading at or near all-time highs despite enduring a tough time earlier this year. However, a closer look at Arm's stock price chart tells us that it is regaining its mojo once again. Shares of the company have jumped 56% in the past three months, outpacing the Nasdaq Composite's 28% gains. Importantly, the stock could get a solid boost when it releases its fiscal 2026 first-quarter results after the market closes on July 30. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Now, Arm stock is trading at a more attractive valuation than it was a year ago, thanks to the 16% dip. That's why now may be a good time to start accumulating Arm, as it seems primed for more upside in the second half of 2025 and beyond. Arm's robust growth has made the stock relatively cheaper Even though Arm's stock price has headed south in the past year, the company's earnings have been growing at an impressive pace in the past 18 months. This is evident from the following chart. Data by YCharts. This is why Arm can now be bought at a relatively cheaper valuation. It is trading at 193 times earnings right now, which is almost a third of its price-to-earnings ratio at the end of June 2024. Additionally, its forward earnings multiple of 79 tells us that analysts are expecting a nice jump in the company's earnings going forward. Of course, Arm's valuation remains at lofty levels when we consider that the U.S. technology sector has an average earnings multiple of 51. But the company is capable of justifying its valuation by clocking healthy levels of earnings growth, thanks to the fast-growing adoption of its latest chip architecture that's contributing positively toward its margins. The company is capable of delivering terrific bottom-line growth Arm licenses its chip architecture and intellectual properties (IP) to semiconductor companies that use them to design chips. The company gets its revenue from licensing agreements that it enters into with customers, along with royalties that it gets from each chip that is manufactured using its design. The good part is that the demand for Arm's IP and chip architecture has improved following the advent of artificial intelligence (AI). That's not surprising, as processors designed using Arm's architecture are said to be better at tackling advanced AI workloads while being power-efficient at the same time, as per third-party analysis. This explains why there has been a whopping 14x jump in the number of customers using Arm-based chips in data centers in just four years. Cloud computing giants such as Alphabet 's Google, Amazon, and Microsoft are developing custom AI processors for their data centers using Arm's IP. The company has also seen a significant jump of 12x in the number of start-ups using its architecture for designing chips in the past four years. Arm's terrific progress in the data center market can also be attributed to a big spike in the number of applications that processors developed using its architecture can run. The company points out that the number of applications that can run on Arm-based chips has doubled since 2021, on the back of a 1.5x jump in the number of developers making those applications. As such, it's easy to see why Arm is confident of increasing its share of data center central processing units (CPUs) to 50% by the end of 2025, which would be more than triple last year's reading. The British company also expects to corner 50% of the PC CPU market by 2029, which would be a sixfold jump compared to last year. Even better, the royalties that Arm commands for its latest Armv9 architecture are reportedly double those of the previous generation. This is the reason why there has been a nice jump in the company's margin profile in the past 18 months. Data by YCharts. Arm is capable of clocking healthy earnings growth levels going forward, and that's precisely what analysts are expecting from the company. Data by YCharts. However, don't be surprised to see Arm's earnings growing at a faster pace than analysts' expectations, thanks to a combination of market share gains and the higher royalty rates for its AI-focused chip designs. Investors looking to add a growth stock to their portfolios can consider buying Arm, as the argument above indicates that it is set to soar higher on the back of an improvement in its earnings power. Should you invest $1,000 in Arm Holdings right now? Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arm Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
