Opinions of people in the semiconductor industry
ARM stocks returned 10.6% yesterday, didn't they? There are probably many people who are interested. I'm also paying attention to it, and of course I own it. So, I will explain ARM's business overview and prospects in the AI smartphone market, with figures from recent financial results.
■Financial Overview (2024/4/6)
・Sales: 0.939 billion dollars, up 39% from the same period last year
・Adjusted EPS: $0.40, up 67.3% from the same period last year
・License and other revenue: 72% increase over the same period last year (50% of sales)
・Royalty revenue: 17% increase compared to the same period last year (50% of sales)
■AI smartphone market growth forecast
・By the end of 2024, 16% of newly shipped smartphones will be compatible with generative AI
・The share of smartphones compatible with generated AI is predicted to reach 54% by 2028 (this is seriously amazing)
■Arm's technical superiority
・Improved AI processing capability with the latest CPU and GPU technology (Armv9)
・ARMv9 architecture and CSS with high royalty rates
■Market Expansion Strategy
・Strengthening partnerships with major companies such as Google and AWS
・Expansion into new markets such as AI data centers, automobiles, and PC markets
■Growth Prospects
・Profit expansion due to increased demand for AI-compatible smartphones
・Continued growth in license and royalty revenue
・Long-term growth opportunities through new technology and entry into new markets
■Conclusions
Therefore, ARM is expected to continue to grow steadily in the future, taking advantage of the rapid growth of the AI smartphone market and its technological superiority. In particular, it is expected that the spread of next-generation smartphones requiring high-performance AI processing capabilities will directly lead to an increase in the company's license revenue and royalty revenue.
We are also expanding into new markets, and we can evaluate the medium- to long-term growth rate as high. My impression of ARM is that there are so many materials that can be expected, such as potential for such promising markets, market capitalization, EPS, and synergy with the SoftBank Group, and that stock prices are still undervalued. It's persistent, but of course I've personally owned stocks for a long time, and I haven't sold them yet.
■Financial Overview (2024/4/6)
・Sales: 0.939 billion dollars, up 39% from the same period last year
・Adjusted EPS: $0.40, up 67.3% from the same period last year
・License and other revenue: 72% increase over the same period last year (50% of sales)
・Royalty revenue: 17% increase compared to the same period last year (50% of sales)
■AI smartphone market growth forecast
・By the end of 2024, 16% of newly shipped smartphones will be compatible with generative AI
・The share of smartphones compatible with generated AI is predicted to reach 54% by 2028 (this is seriously amazing)
■Arm's technical superiority
・Improved AI processing capability with the latest CPU and GPU technology (Armv9)
・ARMv9 architecture and CSS with high royalty rates
■Market Expansion Strategy
・Strengthening partnerships with major companies such as Google and AWS
・Expansion into new markets such as AI data centers, automobiles, and PC markets
■Growth Prospects
・Profit expansion due to increased demand for AI-compatible smartphones
・Continued growth in license and royalty revenue
・Long-term growth opportunities through new technology and entry into new markets
■Conclusions
Therefore, ARM is expected to continue to grow steadily in the future, taking advantage of the rapid growth of the AI smartphone market and its technological superiority. In particular, it is expected that the spread of next-generation smartphones requiring high-performance AI processing capabilities will directly lead to an increase in the company's license revenue and royalty revenue.
We are also expanding into new markets, and we can evaluate the medium- to long-term growth rate as high. My impression of ARM is that there are so many materials that can be expected, such as potential for such promising markets, market capitalization, EPS, and synergy with the SoftBank Group, and that stock prices are still undervalued. It's persistent, but of course I've personally owned stocks for a long time, and I haven't sold them yet.
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