ARM - ARM Holdings plc

IP architecture used in many AI chips; strong licensing and demand signal continued AI investments.

Business model predicated on AI demand through royalties on CPU/GPU sales

Royalties on every CPU/GPU sold, business model tied to AI demand.

ARM is mentioned as benefiting from the AI semiconductor rally, up ~3.7% after Micron's earnings. No specific analysis or recommendation is given.

ARM collects royalties on virtually every custom AI chip built by hyperscalers (Amazon Graviton, Google Axion, Microsoft, Nvidia). It's described as a 'toll booth' that doesn't need to pick winners — it gets paid regardless. It's the cleanest US-listed way to own the CPU layer of the Agentic AI buildout.

ARM is at the center of the AI revolution, providing architecture for Nvidia GPUs, Apple M-series chips, and now expanding into CPUs. Their royalty-based business model generates revenue on every chip sold. Profit margins are 92-97%. Nvidia executives validated ARM as a must-have investment.

Host notes ARM is up 17% above $400 a share as part of the broad tech rally. He includes it among the AI/tech names benefiting from the current market environment.

Chipmaker that went from $200 to $360 in just a week. Gareth thinks this is a pullback candidate, same thought process as NVIDIA, Intel, Lumentum, and Taiwan Semi.

Went up significantly for a second day in a row. If it breaks out above $300 (major psychological level), watch it to the upside tomorrow.

Sam highlights ARM's strong performance heading into the NVIDIA print, noting it's near its highest closing high. ARM is seen as a key beneficiary of the CPU growth story tied to NVIDIA's ecosystem.