Latest news with #M-series
CNBC
29-07-2025
- Business
- CNBC
Cadence Design Systems is up huge on earnings. What the charts say to do next
There's an old saying in the markets; "The longer the base, the higher in space." Cadence Design Systems 'CDNS' just broke from a 16-month base following a strong earnings report. Sixteen months may not seem that ridiculously extended, but for a company that helps the biggest chip makers in the world design, test, and perfect their chips before they even begin manufacturing, and NVDA higher by 84% in that same 16-month period, I think it's significant. I've been watching this name for some time to add to my portfolio and have owned this in the past, but Tuesday morning's earnings popped the stock out of the base consolidation. I was hesitant to buy this stock up 10% following the report, but looking at the weekly chart you'll see a series of 1-year or greater bases followed by breakouts ranging from 64% to 130%. With room to run, I added a 4% allocation to my Active Opps portfolio this morning and with confirmation that support is holding and buyers continue to push the stock higher, I'll aim for an 8% holding. Notice the GAAP earnings projection below the chart of $4.27 in 2025, but then a 28.9% growth to $5.50. Non-GAAP EPS for 2025 is expected to be $6.75 and then grow to $7.79 in 2026. Top line is also growing nicely at a 11%-19% clip. Moving down to the daily chart you see an up-close look at the range that's been in play since March 2024. I would not be surprised to see a pullback towards $350/$340 and if buyers appear offering the stock support, I'll know there is more institutional money coming to market to get on board the initial missed breakout. Cadence shares essentially a duopoly with Synopsys, Inc (SNPS) in the electronic design automation (EDA) market. This is a high barrier to entry, highly technical segment that is a foundation to the entire semiconductor design market. Their customer base includes Nvidia, AMD , Intel , AMR, Tesla , and Apple and are deeply entrenched in these company's workflows. Jensen Huang, CEO of Nvidia, said that Cadence's Palladium emulation system is indispensable to Nvidia. Apple uses Cadenece's EDA suite in their custom M-series chip and their growing AI infrastructure projects. Moreover, they are diversified from just consumer electronics as they service automotive, aerospace, and AI infrastructure. In our Active Opps portfolio we hold a 4.07% allocation in CDNS established July 29. - Todd Gordon, Founder of Inside Edge Capital , LLC We offer active portfolio management and regular subscriber updates like the idea presented above DISCLOSURES: (Gordon and his firm own CDNS) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
28-07-2025
- Business
- Yahoo
ARM to Post Q1 Earnings: Should the Stock be in Your Portfolio?
Arm Holdings plc ARM will report its first-quarter fiscal 2026 results on July 30, after the bell. The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 34 cents, indicating a 15% year-over-year decline. The consensus mark for revenues is pegged at $1.04 billion, indicating a 11% year-over-year increase. Image Source: Zacks Investment Research The company has a strong history of earnings surprises. Earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average earnings surprise of 14.4%. There have been no revisions for the upcoming quarter's earnings estimate in the past 30 days. What Our Model Says Our proven model doesn't conclusively predict an earnings beat for ARM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. ARM has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Royalty Should Drive ARM's Top Line We expect year-over-year improvement in the company's top line in the to-be-reported quarter to be driven mainly by an increase in Royalty revenues. The consensus estimate for Royaltyrevenuesis pegged at $599 million, suggesting a 28.3% year-over-year decline. The consensus estimate for License and other revenues is pegged at $440 million, indicating a 6.8% year-over-year decline. Price Dynamics ARM has rallied a massive 46% in the past three months. This massive rally has sent the stock to a higher valuation. If we look at the forward 12-month Price/Earnings ratio, ARM shares currently trade at 85.2X forward earnings, well above the industry's 34.18X. < Image Source: Zacks Investment Research Investment Considerations ARM's core strength in power-efficient chip architecture remains central to its leadership in mobile computing. Its designs power sleek, energy-saving devices from Apple AAPL, Qualcomm QCOM, and Samsung, making ARM the foundation of today's mobile innovation. As demand for performance on minimal power rises, Arm Holdings' chips continue to dominate smartphones and tablets. Apple leverages ARM's architecture for its M-series chips, while Qualcomm depends on it to power its Snapdragon lineup. Samsung integrates ARM designs across mobile and consumer electronics, further affirming its critical role. ARM's proven ability to balance high efficiency and low power draw has solidified its status in the mobile era. ARM is rapidly emerging as a foundational player in the age of artificial intelligence (AI) and the Internet of Things (IoT). As Apple, Qualcomm, and Samsung pursue AI-driven innovation, they are increasingly relying on ARM's flexible and energy-efficient architecture. AI models are being embedded into everything from wearables to cloud data centers, and ARM's chips are built to meet these growing demands. Apple continues to scale its AI integration on ARM-based silicon, Qualcomm expands its AI capabilities in mobile and automotive, and Samsung explores next-gen IoT through Exynos chips powered by ARM. With machine learning and edge computing at the forefront, ARM is becoming an indispensable infrastructure for the next wave of tech advancement. Wait for a Better Price Given the stock's substantial increase over the past three months, it may experience a correction soon. Therefore, it might be wise for investors to wait for a potential correction. While ARM remains fundamentally strong, a more advantageous entry point could emerge if the stock undergoes some price adjustment. The company's robust position in the AI hardware market and its strategic advancements in chip design suggest long-term growth potential, but timing the market entry is crucial for maximizing investment returns. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Yahoo
28-07-2025
- Business
- Yahoo
ARM to Post Q1 Earnings: Should the Stock be in Your Portfolio?
Arm Holdings plc ARM will report its first-quarter fiscal 2026 results on July 30, after the bell. The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 34 cents, indicating a 15% year-over-year decline. The consensus mark for revenues is pegged at $1.04 billion, indicating a 11% year-over-year increase. Image Source: Zacks Investment Research The company has a strong history of earnings surprises. Earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average earnings surprise of 14.4%. There have been no revisions for the upcoming quarter's earnings estimate in the past 30 days. What Our Model Says Our proven model doesn't conclusively predict an earnings beat for ARM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. ARM has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Royalty Should Drive ARM's Top Line We expect year-over-year improvement in the company's top line in the to-be-reported quarter to be driven mainly by an increase in Royalty revenues. The consensus estimate for Royaltyrevenuesis pegged at $599 million, suggesting a 28.3% year-over-year decline. The consensus estimate for License and other revenues is pegged at $440 million, indicating a 6.8% year-over-year decline. Price Dynamics ARM has rallied a massive 46% in the past three months. This massive rally has sent the stock to a higher valuation. If we look at the forward 12-month Price/Earnings ratio, ARM shares currently trade at 85.2X forward earnings, well above the industry's 34.18X. < Image Source: Zacks Investment Research Investment Considerations ARM's core strength in power-efficient chip architecture remains central to its leadership in mobile computing. Its designs power sleek, energy-saving devices from Apple AAPL, Qualcomm QCOM, and Samsung, making ARM the foundation of today's mobile innovation. As demand for performance on minimal power rises, Arm Holdings' chips continue to dominate smartphones and tablets. Apple leverages ARM's architecture for its M-series chips, while Qualcomm depends on it to power its Snapdragon lineup. Samsung integrates ARM designs across mobile and consumer electronics, further affirming its critical role. ARM's proven ability to balance high efficiency and low power draw has solidified its status in the mobile era. ARM is rapidly emerging as a foundational player in the age of artificial intelligence (AI) and the Internet of Things (IoT). As Apple, Qualcomm, and Samsung pursue AI-driven innovation, they are increasingly relying on ARM's flexible and energy-efficient architecture. AI models are being embedded into everything from wearables to cloud data centers, and ARM's chips are built to meet these growing demands. Apple continues to scale its AI integration on ARM-based silicon, Qualcomm expands its AI capabilities in mobile and automotive, and Samsung explores next-gen IoT through Exynos chips powered by ARM. With machine learning and edge computing at the forefront, ARM is becoming an indispensable infrastructure for the next wave of tech advancement. Wait for a Better Price Given the stock's substantial increase over the past three months, it may experience a correction soon. Therefore, it might be wise for investors to wait for a potential correction. While ARM remains fundamentally strong, a more advantageous entry point could emerge if the stock undergoes some price adjustment. The company's robust position in the AI hardware market and its strategic advancements in chip design suggest long-term growth potential, but timing the market entry is crucial for maximizing investment returns. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Phone Arena
25-07-2025
- Business
- Phone Arena
Intel overplayed its hand and now it wants to rebuild
Intel has been through the wringer lately. First, Apple dropped its chips in favor of the M-series. Then AMD started chipping away at its lead in the PC space. And now Arm-based rivals and AI giants like Nvidia are piling on the pressure. The result? A company that's lost serious ground and is now being forced to reinvent itself – its latest earnings report for Q2 2025, Intel revealed a massive shake-up that makes one thing very clear: this isn't just a rough patch. It's a full-blown new CEO Lip-Bu Tan, Intel is slashing costs and cutting loose anything that doesn't serve its core mission. That means thousands of jobs are being cut, major manufacturing projects are being scrapped or delayed and the company is slimming down to focus on fewer, smarter ended 2024 with nearly 110,000 employees. By the end of 2025, it expects to be down to just 75,000. That's roughly a quarter of the company – gone. And it's not the first time: Intel already cut 15,000 jobs last year. – David Zinsner, Intel CFO, July 2025 Intel is also walking away from high-profile projects it once hyped up – including the chip factory in Germany and an assembly plant in Poland. Both had been stuck in limbo since last year, and now they're officially off the table. The $28 billion Ohio factory? Delayed again. It was supposed to open in 2025, then pushed back earlier this year, and now it's on pause once more. Intel says its previous investments were 'unwise and excessive,' admitting that it overbuilt in a market that didn't deliver the demand it hoped for. – Lip-Bu Tan, Intel CEO, July 2025 So, Tan is now taking a more conservative approach: no new capacity unless the orders are already there. In other words, Intel isn't going to build chips and hope someone buys them. It's only going to build what it knows it can Tan isn't just making high-level strategy changes. He's stepping in to approve every chip design himself – yes, really. The former Cadence CEO has a long background in chip design, and he's already making moves to fix issues like Intel's recent missteps with multi-threading capabilities. The goal is to return to a 'first time right' mindset – fewer design mistakes, tighter execution, and a more focused roadmap. If Tan can pull that off, future Intel chips might actually get more competitive again. Meanwhile, Intel's Core Ultra (Series 2) with vPro continues to expand, delivering powerful, efficient and secure performance for desktops and laptops. | Image credit – Intel So, how does this all affect the laptops you'll be shopping for in the next year or two? In the short term, you might see fewer new Intel chips, slower refresh cycles, or even some gaps in the lineup as the company consolidates and retools. Meanwhile, competitors like Apple, AMD, and Qualcomm will likely keep charging ahead – especially as Arm-based and AI-focused chips keep gaining traction. But if Intel's reset works, we could be looking at even better chips down the road – ones that are more efficient, more reliable, and designed with fewer compromises. Switch to a 2-month Total 5G or 5G+ plan with Total Wireless and score this foldable deal. We may earn a commission if you make a purchase Check Out The Offer
Yahoo
07-07-2025
- Business
- Yahoo
Has ARM's 16% Decline Over a Year Created a Buying Opportunity?
Shares of Arm Holdings plc ARM have dropped 16% over the past year, underperforming the broader semiconductor industry, which posted a solid 16% gain during the same period. This stark contrast raises an important question for investors: With ARM stock lagging behind its peers, could this present a potential buying opportunity, or is there more downside ahead? Image Source: Zacks Investment Research Let's take a closer look at what's driving the stock's weakness and whether now might be a smart time to invest. ARM's core strength in power-efficient chip architecture remains central to its leadership in mobile computing. Its designs power sleek, energy-saving devices from Apple AAPL, Qualcomm QCOM, and Samsung, making ARM the foundation of today's mobile innovation. As demand for performance on minimal power rises, Arm Holdings' chips continue to dominate smartphones and tablets. Apple leverages ARM's architecture for its M-series chips, while Qualcomm depends on it to power its Snapdragon lineup. Samsung integrates ARM designs across mobile and consumer electronics, further affirming its critical role. ARM's proven ability to balance high efficiency and low power draw has solidified its status in the mobile era. ARM is rapidly emerging as a foundational player in the age of artificial intelligence (AI) and the Internet of Things (IoT). As Apple, Qualcomm, and Samsung pursue AI-driven innovation, they are increasingly relying on ARM's flexible and energy-efficient architecture. AI models are being embedded into everything from wearables to cloud data centers, and ARM's chips are built to meet these growing demands. Apple continues to scale its AI integration on ARM-based silicon, Qualcomm expands its AI capabilities in mobile and automotive, and Samsung explores next-gen IoT through Exynos chips powered by ARM. With machine learning and edge computing at the forefront, ARM is becoming an indispensable infrastructure for the next wave of tech advancement. ARM faces notable risks due to its significant exposure to China, its second-largest market. Growth in the region has been sluggish, and one potential reason is the rising adoption of RISC-V, an open-source chip architecture increasingly favored by Chinese firms. This trend may soon accelerate, as the Chinese government prepares to issue formal guidelines aimed at promoting the development and widespread use of RISC-V technology. Such state-backed support could further weaken ARM's position in the Chinese semiconductor ecosystem over the coming years. Given China's strategic focus on reducing dependence on foreign chip architectures, the company's reliance on this market presents a long-term concern. If RISC-V adoption continues to gain traction, Arm Holdings' growth prospects in China could remain muted, affecting its broader global momentum. These evolving competitive dynamic highlights a key vulnerability in ARM's business model that investors should closely monitor. ARM's potential move into producing its own CPUs presents both an opportunity and a risk. On one hand, entering the hardware space could significantly expand its total addressable market and drive revenue growth. However, this strategy could also backfire by turning Arm Holdings into a direct competitor to its top customers, potentially straining key relationships. The risk is heightened by reports that the company is hiring talent away from these same clients, which may further fuel tensions. While the hardware push offers upside, it could alienate partners and jeopardize existing licensing revenues from major chipmakers. At the same time, ARM's move to develop its CPUs could significantly compress its gross margins, as the company would begin absorbing the direct costs associated with chip manufacturing. ARM may face near-term headwinds as analyst sentiment turns cautious. Over the past 60 days, five downward revisions have been made to its first-quarter fiscal 2025 earnings estimates, with no upward adjustments. This trend reflects growing concern over the company's ability to meet prior expectations amid evolving industry dynamics. Image Source: Zacks Investment Research Notably, the Zacks Consensus Estimate for earnings has dropped by 15% during this period, signaling potential softness in revenues or margin performance. Such cuts can weigh on investor confidence and may lead to increased volatility in the stock until visibility around growth drivers improves. Image Source: Zacks Investment Research ARM stock is currently expensive. It is priced at around 82.54 times forward 12-month earnings per share, significantly higher than the industry's average of 33.55 times. When looking at the trailing 12-month EV-to-EBITDA ratio, ARM is trading at around 120.3 times, far exceeding the industry's average of 21.16 times. ARM may no longer justify investor confidence, despite its leadership in power-efficient chip architecture and rising relevance in AI and IoT. The company faces multiple headwinds, including weakening growth in China due to increasing adoption of rival technologies like RISC-V, as well as potential fallout with top clients as it pushes into CPU manufacturing. This shift could hurt existing partnerships and pressure margins. Analyst sentiment has also turned negative, with multiple downward revisions to earnings estimates. Coupled with an overstretched valuation compared to peers, these factors suggest limited upside. Investors may want to exit positions before challenges deepen further. ARM currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
