ARM - ARM Holdings plc

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.

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.

Part of ZipTrader 25 core buy-and-hold list, up 50.75% in one month.

Double beat with 20% revenue growth, record $1.5B quarter. First data center chip exceeded expectations. 97.85% gross margins, 78% operating margins, 65% net income margins. Stock surged 8-12% on the report. Host finds it very interesting for AI era.

Host mentions ARM as having earnings and being up 12.6% on the day. He's considering covering their earnings call. He knows less about ARM compared to other names but acknowledges its importance to the semi plays.

ARM announced it's entering the selling chips for revenue business with 'world's most efficient agentic CPU.' Meta partnering with them. Stock up 1% on the news. No explicit recommendation but noted as interesting development.

ARM beat on EPS (43c vs 41c) and revenue (+26% YoY) but guided only slightly above consensus, leading to a 7-8% selloff. The hosts see this as another example of the market punishing even good results. ARM's argument about CPU demand for power-constrained AI workloads is noted.

Every robot uses ARM-based processors for energy efficiency. ARM gets a royalty on every chip, making it a picks-and-shovels play in the robotics ecosystem.