ARM (#ARM)

ARM HOLDINGS (#ARM) weekly special report based on 1 Lot Calculation:

ARM: THE COMPANY

• BRITISH SEMICONDUCTOR COMPANY THAT DESIGNS AND LICENSES THE ARCHITECTURE FOR MICROPROCESSOR used in electronic devices like smartphones, tablets, and computers. Its technology is widely adopted by chip manufacturers due to its energy efficiency and performance. It has recently been gaining market share in automotive and cloud services. Today, 99% of smartphones use ARM processors. (Source: Financial Times).

• IPHONE 16 WAS DEVELOPED USING ARM’S NEWEST V9 CHIP DESIGN. Apple’s latest iPhone with its A18 chip, has been developed using Arm’s newest V9 chip design. Arm had said in July that its V9 chip accounts for 50% of smartphone revenue.

ARM: EVENTS

• Q4 EARNING RESULTS (February 5, 2025 - AFTERMARKET): ARM posted better-than-expected fiscal Q3 results. The chip designer posted net income of $114.7 M, a significant turnaround from the $78.5 M loss in the same quarter last year. Revenue reached $844 million, making a 5% increase from $806 million a year earlier. For Q4, analysts expect further growth, projecting a 15% rise in revenue to $947.7M and remarkable 308% surge in net income to $362.3M.

SOURCE: BLOOMBERG TERMINAL

Please note that past performance does not guarantee future performance.

ARM: NEWS AND FUNDAMENTAL ANALYSIS

• ARM WILL E BE A TECHNOLOGY PARTNER IN THE $500B STARGATE AI INFRASTRUCTURE PROJECT. US President Donald Trump has announced a $500 billion artificial intelligence initiative dubbed Stargate in collaboration with Oracle, SoftBank, and OpenAI. Arm is majority owned by SoftBank and partners with Oracle.
• DEEPSEEK EFFECT: Arm Holdings stands to benefit from the rising demand for AI chips driven by cost-effective AI companies like DeepSeek. As AI adoption expands, Arm’s power-efficient chip designs position it as a key supplier for emerging AI applications. Additionally, the U.S. is taking steps to protect its AI sector, reviewing national security risks and considering restrictions on foreign AI firms. These measures could further boost demand for domestically trusted semiconductor solutions, indirectly benefiting companies like Arm that play a crucial role in the global AI hardware market.

ARM: PRICE ACTION

• RECENT MARKET CORRECTION: ARM LOST 48.47% FROM JULY 9 TO AUGUST 5. The stock fell from $188.48 to $97.13 (three-month low). Since August 5, Arm has recovered by around 54%, trading currently around $154 a share.
• THE STOCK HAS TRADED AROUND 18% BELOW ITS ALL-TIME HIGH OF $188.48 (July 9, 2024). Arm was last trading around $154 (and if a full recovery follows recent all-time highs, the stock could see an upside of around 22%. However, the price could decline further.
• ANALYSTS OPINIONS: Morgan Stanley forecasts $175. Jefferies forecasts $170. Citigroup forecasts $170. Rosenblatt forecasts $180.

ARM, January 31, 2025
Current Price: 154.0

Example of calculation based on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 1 000 units
2. Calculations for exchange rate used as of 8:30 (GMT) 31/01/2025

There is a possibility to use Stop-Loss and Take-Profit

• You may wish to consider closing your position in profit, even if it is lower than the suggested one.
• Trailing stop technique could protect the profit