ARM surged 118% in the first half of 2024

Incidentally, the S&P 500 stock price index for the first half of the year was 15.3%, and the Nasdaq Composite Stock Price Index, which has a high high-tech stock ratio, was 18.6%.

The CPU architecture is designed, and intellectual property (IP) related to that design is licensed to customers including major companies such as Apple, NVIDIA, and Qualcomm. ARM IP-based CPUs are known for their energy efficiency.

On February 7, Arm announced financial results for the 3rd quarter of the 2024 fiscal year (ending 2023/12/31). This was the company's second quarterly report since its initial public offering (IPO) in September last year.

The stock price surged 47.9% the next day and 93.4% in the 3 days after the announcement. What triggered it was that earnings and profits for the same quarter exceeded Wall Street expectations, guidance for the fourth quarter exceeded analysts' expectations, and management revised its full-year outlook upward.

Revenue growth was driven by an 18% increase in license revenue and an 11% increase in royalty revenue. The increase in license revenue is due to strong demand for advanced arm-based CPUs for processing AI workloads.

Arm's stock price fell 33% in mid-April amid a market slump that particularly hit high-tech stocks. However, this decline was short-lived.

On 5/8, Arm announced financial results for the fourth quarter of 2024, which ended on March 31. Shares fell 2.3% the next day. However, after digesting this report, investors changed their policy and increased the stock price by 10.5% in the three days following the announcement. The initial decline was due to investor disappointment that sales and profit guidance for the 2025 fiscal year fell slightly short of Wall Street's expectations. However, the results for the current quarter were strong and exceeded Wall Street's expectations, and the forecasts for the first quarter of the 2025 fiscal year announced by management also exceeded analysts' expectations.

Arm's stock price continued on an upward trend until the end of the first half of the year, except for a slight return in mid-June. From the announcement of financial results on 5/8 until the end of June, stock prices rose 54%.

Arm plans to announce financial results for the first quarter of the 2025 fiscal year after the market closes on 7/31 (Wednesday).

Wall Street currently predicts first-quarter sales of 0.9 billion8 million dollars and adjusted EPS of 0.34 dollars.

For the full year, analysts expect sales of 4 billion dollars and an adjusted EPS of 1.55 dollars.