Arm Holdings is a UK-based semiconductor and software design company that has been around for quite some time and been through multiple corporate events, changes of ownership and multiple large investors. Recently, the company has been trading like a newcomer on the semiconductor scene — and looking at the fundamental and technical developments — it could trade a lot higher from here. The majority shareholder of Arm (ARM) is Japanese conglomerate Softbank, which bought the company in 2016 before taking it public again on the Nasdaq in 2023. The ARM daily chart shows an incredible uptrend since that 2023 IPO with a big gap higher following a strong third-quarter earnings beat. The stock formed a base into March, held $120-area support and is now mounting another attack after breaking the gray dotted downtrend resistance/trigger level at $135. I do not yet hold the stock, but I am looking to add to our holdings at current levels and will require the stock to remain above that $135 breakout level now serving as support. I will look for volume increases as shown at the bottom of the chart to confirm we’re on the right path here. Looking at the weekly Relative Rotation Graph of ARM compared to the other semiconductors you’ll notice that ARM has accelerated ahead since that third-quarter earnings gap higher, even ahead of Nvidia. ARM has made significant progress with their instruction set for lower-power consumption and low heat production for mobile devices. They’re also working in conjunction with Cadence Design Systems (CDNS) in the automotive design space. ARM acts as a competitor in the server space to IBM, Intel, and AMD. ARM also acts as a core instruction IP set that companies will build from including Nvidia, Apple, Facebook, Google, and AMD. ARM just announced a partnership with Intel to help chip startups. This company is quite complex to fully wrap your arms around due to its long history and complex ownership structure, but it’s leading an industry that is changing the world so if you look at ARM, be sure to use risk management via the technicals and look to align yourself with the trend. DISCLOSURES: (Gordon does not own ARM, but is looking to add to his holdings at Inside Edge Capital) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
