Opinions of the semiconductor industry.
Since ARM's 2Q financial results have been released, I will provide an explanation. In conclusion, while the sales were better than expected, the guidance was conservative and the stock price fell after hours. However, I believe that in the long term, there is considerable potential. I think ARM is quite undervalued among various AI semiconductor stocks, and if you can wait until around 2029, the stock price has the potential to increase by 2.5 to 5 times. There are three reasons for this: firstly, the explosive growth of the AI market. There are varying views from research institutions, but the annual growth rate is between 20-40%. Secondly, the rise of AI smartphones (half of the shipments are expected to be AI smartphones by 2027). And the third reason is the increase in royalty income from ARM's v9 architecture optimized for AI (from 1.7% to 4%). Considering these three reasons, it is believed that the large vessel of AI will grow, within which AI smartphones will expand, and within that, ARM dominating the chip blueprints will grow, with high royalty income leading to an increase in profit margin. Even assuming a conservative 20% growth in the AI market itself, it would double in 5 years. Being in the most important position within this, ARM would at least be connected to that logic. it would be quite difficult for anyone other than ARM to take the share of AI smartphone architecture from now on. Therefore, personally I own shares of ARM, and I would like to continue supporting it. However, everyone, please do not take my word for it verbatim, as investing is at your own risk.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Magnificent7 : I completely agree. I purchased it during ipos with confidence, buying more each time it drops significantly. I hope for an increase, but I also welcome a decrease... I look forward to 2030!
182737223 : Thank you for your specialized opinion. However, upon further reflection, a fivefold increase in five years seems somewhat slow for growth stocks. I guess there's no end to human desires.