Arm Holdings, the chip designer, experienced a remarkable surge in its stock price, rising over 63% in one day. This increase added $40 billion to its market cap, making it the 11th largest semiconductor company. The stock's performance was driven by a strong earnings beat and bullish guidance, reflecting the company's role in the AI boom. Arm's stock outperformed other tech giants, with a six-month performance of 87% compared to Nasdaq's 14%, Microsoft's 27%, AMD's 50%, Meta's 50%, and Nvidia's 56%. The company's CEO, Rene Haas, emphasized the profound opportunity in AI, stating that it is not a hype cycle. Despite concerns over valuations, with a 216 P/E and 41 P/S, and stock-based compensation, Haas is not worried about the long-term. Arm's post-earnings optimism is also reflected in bullish opening orders with significant premiums. The company's stock trades at a premium compared to peers, with a forward sales multiple exceeding that of Nvidia. Jim Cramer of CNBC still considers Arm a buy, while institutional investors have shown significant buying interest in Q4. Additionally, Arm trades at 60x its FY2027 forecasted free cash flow (FCF), and Softbank still holds 90% of its shares.
“The Santa Clara, California-based company controls about 80% of high-end AI chip market, a position that has sent its stock market value up 40% so far this year to $1.73 trillion after it more than tripled in 2023.” https://t.co/jDRgFOyWky
Nice dive from @TheFuturumGroup research director @OABlanchard on the overall #semiconductor space. Solid outlook on the overall #AI space and comments on @Arm's outsized results and jump following its earnings. As always solid segment from @NPetallides $NVDA $QCOM $INTC $ARM https://t.co/d386qATiuh
Interview with @arm CEO @renehaas237 @BenBajarin and @jaygoldberg discuss all things Arm with Rene Haas. (00:00) Introduction and Company Overview (02:05) ARM's Role as the Brain of Electronic Devices (03:02) ARM's Business Model (04:02) Value Capture and Increasing Share… https://t.co/q2YQtMqT8r
.@danielnewmanUV, CEO and Chief Analyst at @TheFuturumGroup, was a guest on @CNBC’s International Capital Connection discussing how @Arm has a very clear AI story that will lead to growth. https://t.co/mW6nAZXDLy #CNBC #ARM #Earnings #TheFuturumGroup https://t.co/gnj133OXck
What a wild surge for Arm, but was it really? The initial ties to #AI during its IPO felt more speculative, but the clear path to being a big winner from AI proliferation in the datacenter, automotive, and PC/Devices are setting up Arm to win big through not just licensing on… https://t.co/enm5k4MDuD
Cramer: " $ARM is not a short squeeze"
$ARM (-1.8% pre) Arm’s post-earnings pop leaves stock trading at over 100% premium to $NVDA Nvidia - CNBC https://t.co/zwrSoUszLt
⚠️ JUST IN: *ARM HOLDINGS ADDS $38 BILLION IN MARKET VALUE AFTER RECORD 48% GAIN $ARM https://t.co/mpvoEQkaas
$ARM Arm stock is now trading at 31.6 times forward sales, well above the multiple for Nvidia, $NVDA which is trading at about 19.4 times https://t.co/GyA9vCZ0Hh
*ARM ADDS $38 BILLION IN VALUE AFTER RECORD 48% JUMP AI companies are adding decades of future earnings in one session
Todays Trades 🐼 $ARM 105c hit +310% (6.00 to 24.60) $PYPL 55p hit +76% (0.50 to 0.88) $PINS Swing entered last week up +95% today (1.97 to 3.95) Have a great rest of the day everyone! https://t.co/G8YVqfKGlD
$ARM was traded as high as $126.59, a 64% above its close price yesterday, very impressive.👇🏼 Institutional investors incl. hedge funds are significant buyers in Q4 as the latest Q4 #13F data indicated. 76% of the 100 institutional holders who reported holding $ARM shares… https://t.co/GrbB5COMUg https://t.co/LOu8r9PoHP
Top beneficiaries of @Arm's great results (select) Obvious. 1. @Qualcomm 2. @Apple 3. @AMD 4. @NVIDIA 5. @TWSemicon 6. @awscloud 7. @Microsoft Less obvious. 1. @Synopsys 2. @Cadence 3. @intel 4. @SamsungSemiUS 5. @MicronTech 6. @Oracle $QCOM $AAPL $NVDA $AMD https://t.co/Rzeb71MDgI
.@Arm is out with its first post-IPO earnings report, beating Wall Street estimates and sending the stock soaring. CEO Rene Haas joins @jimcramer @davidfaber @carlquintanilla & @SaraEisen to reveal the reason behind the results. $ARM https://t.co/j7RJfa3p3X
.@Arm CEO Rene Haas responds to concerns over valuations, stock-based compensation and the possibility of a short squeeze. "That's going to settle itself out in the long term, I'm not worried about that," he tells @davidfaber. $ARM https://t.co/XQEHGccPOH
What a move - Arm shares up 57% today - rpts @MActon93. Now in top ten UK companies by market cap https://t.co/BoFjnWqj1l
Update: 54% on one day. What a powerful validation of the @Arm ecosystem and its #AI story. $ARM https://t.co/u8XsEKdkoR https://t.co/9BRFRjny5I
Chip-designer Arm is absolutely ripping today - Up almost 60% - Added $40 billion in market cap - Now the 11th largest semiconductor company And Softbank still holds 90% of shares The AI boom is crazy https://t.co/8HIhnruIoo
It is totally not late cycle bubble mania when a stock beats 8% and rises 60% to a 216 P/E and 41 P/S on a single day. Congratulations to all holders - enjoy while it lasts. $ARM
Incredible…$ARM: https://t.co/6Wu2LVmzUZ https://t.co/7J4CqstxSe https://t.co/X5i3gXfxDR https://t.co/b4Ioex99Ug https://t.co/zqVeopilem
Arm $ARM CEO on @technology earlier: “AI is not in anyway shape or form a hype cycle... We believe that AI is the most profound opportunity in our lifetimes and we’re only at the beginning.”
Jim Cramer says chip designer Arm Holdings $ARM up more than 55% today is still a buy - CNBC
Jim Cramer says chip designer Arm Holdings up more than 55% is still a buy. Here's why https://t.co/MebprtFPZu
One thing that gets $ARM bulls like me excited: it only trades for 60x 2027 free cash flow... ...and to achieve that 2027 free cash flow expectation, earnings only have to quintuple over the next 3 yrs. 60 x 5 = 300 = my new 2027 price target. Bullish x Bullish = Super Bullish
MyPOV: .@Arm stock gains more than 25% on strong #earnings beat and bullish guidance https://t.co/dZaO9kKNY2 @silionANGLE “Investors are hoping to see Arm extend its record-breaking streak into the full year.” @holgermu @constellationr
I'm getting that 1990s feeling again... Arm Shares Rise More Than 50% on AI Craze https://t.co/31vbt53azh
$ARM twice as expensive as $TSLA here
$ARM $105c yesterday closed at $0.24 (If I remember right) ... They hit $18 $500= $36000 $1000 = $73800 #power #of #options
With gains of 56% so far this morning, $ARM has flown past ALL Wall Street Price Targets that were just set in the last DAY!! #stocks #stockmarket https://t.co/2aPztnNt99
One of the most exciting parts about being an $ARM bull is that we're only paying 60x FY2027 FCF (earnings). Opportunities like this don't come along every day. https://t.co/avh5vIUn06
$ARM Post-Earnings Opening Orders (Bullish) The prints have a lot of premium behind them and Vol > OI so they were bought to open https://t.co/2nSE0EuLuX
With $ARM up 50% today, here's the update how mega cap AI has performed over the past six months. Nasdaq up 14% $MSFT up 27% $AMD up 50% $META up 50% $NVDA up 56% $ARM up 87% We're just getting started. https://t.co/H6eCWI7xvF
$ARM CEO taking victory lap over AI AI AI AI; Cramer asks how much ARM Massa is buying here. (Translation: secondary getting prepped as we speak.) https://t.co/jSpIjWctrN
Squeezy McSqueezer: $ARM +63%!! Mental Checklist Update: Never short a highly shorted gambling-football semiconductor stock that is 90% owned by a maniac into earnings during an AI boom. https://t.co/pDe8IUtorm