ARM HOLDINGS (#ARM) weekly special report based on 1 Lot Calculation:
ARTIFICIAL INTELLIGENCE
- AI: ACCORDING TO THE INTERNATIONAL DATA CORPORATION, COMPANIES WILL SPEND $500 BILLION BY 2027, WHICH COULD SEE DEMAND FOR ARM’S CPU PRODUCTS: ARM designs chip architecture for all the major companies, and is the most dominant chip designer in the world. ARM designs chips for Apple, Amazon, Nvidia and AMD just to name a few.
- ARM IN THE CHIP INDUSTRY: As a chip designer, ARM plays an integral role in the artificial intelligence space, as all companies that develop and sell artificial intelligence chips are likely using a chip architecture designed by ARM. While ARM is more focused on Central Processing Units (CPU) chips, its dominance is colossal. According to reports, 30 billion chips worldwide used ARM technology.
ARM: THE COMPANY
- ARM is not a chipmaker itself. Rather, the company is responsible for coming up with the “architectures” — or overall designs, including components and programming language instructions that other companies use to build chips. Today, 99% of smartphones use ARM processors.
ARM: EVENTS AND ANALYSIS
- EVENT (WEDNESDAY, NOVEMBER 6, AFTERMARKET): Q2 EARNINGS RESULTS. The company is expected to print 810.1 million dollars in revenue for Q3, accompanied by a net income of 272 million dollars. This would be up from 806 million dollars in revenue and negative net income of 78.5 million dollars the same period last year ARM has beat earnings and revenue estimates four times over the past four quarterly earnings releases. The company went public in September 2023, and has only published earnings for Q3 of 2023, Q4 of 2023, Q1 of 2024 and Q2 of 2024.
SOURCE: BLOOMBERG TERMINAL
Please note that past performance does not guarantee future performance.
- ARM ROSE 28.47% ON AVERAGE IN ONE MONTH AFTER THE EARNINGS REPORT GOT RELEASED
DATA SOURCE: BLOOMBERG TERMINAL
Please note that past performance does not guarantee future performance.
ARM: PRICE ACTIONS
- ARM HIT AN ALL TIME HIGH OF $188.48 (July 9, 2024). The stock trades currently around $142 and if it follows a full recovery to its most recent all- time high of 188.48, this could provide an upside potential of around 33%. However, the stock could further decline.
- ANALYST OPINION: Morgan Stanley forecasts $175, Jefferies forecasts $170, Citigroup forecasts $170, Mizuho forecasts $160.
#ARM, October 31, 2024
Current Price: 142
|
ARM |
Weekly |
|
Trend direction |
|
|
200 |
|
|
180 |
|
|
162 |
|
|
123 |
|
|
117 |
|
|
113 |
Example of calculation based on weekly trend direction for 1 Lot1
|
ARM |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
58,000 |
38,000 |
20,000 |
-19,000 |
-25,000 |
-29,000 |
|
Profit or loss in €2 |
53,341 |
34,947 |
18,393 |
-17,474 |
-22,992 |
-26,670 |
|
Profit or loss in £2 |
44,624 |
29,236 |
15,387 |
-14,618 |
-19,234 |
-22,312 |
|
Profit or loss in C$2 |
80,716 |
52,883 |
27,833 |
-26,442 |
-34,792 |
-40,358 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 14:30 (GMT) 31/10/2024
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 suggested one.
- Trailing stop technique could protect the profit.