“The English semiconductor arm soared 64% at one point!! Will stock prices continue to rise?”

Arm Holdings handles architecture (basic concept) design, development, and licensing of semiconductor products and related technologies centered on CPUs (central computing units)The world's leading semiconductor companiesThat's it. The main products are CPU products that meet diverse performance, power consumption, and cost requirements. In addition, complementary products such as GPUs (graphics processing units = units that have many cores within the element and enable high-speed computation), system IPs, calculation platforms, etc. are also provided, making it possible to build a system level with high performance and high reliability, and are compatible with increasingly sophisticated devices and applications. (above source; moomoo securities)

● Arm announced financial results after trading hours on February 7. The summary is as follows,Key management figures were higher than anticipated in advance. Also, the full-year earnings forecast per share was revised upward, and it also exceeded expectations. Strong guidance (forecast) for earnings per share was also shown for the January-March fiscal year, and was well received by the market.

(October-December, 3rd quarter)

・Earnings per share (adjusted): $0.29 (forecast: $0.25)

・Sales: $824 million (forecast: $760 million)

・Gross profit margin (adjusted): 96.7% (forecast: 96.4%)

・Operating profit (adjusted): $338 million (forecast: $274 million)

・Annual contract value (ACV): $1.16 billion (estimated: $1.11 billion)

・Semiconductor shipments: 7.7 billion

(January-March 4th quarter forecast)

・Earnings per share (adjusted): $0.28 to $0.32 (forecast: $0.21)

・Sales: 8.50 to 900 million dollars (forecast: 778 million dollars)

(full-year forecast)

・Earnings per share (adjusted): 1.20 to 1.24 dollars (conventional: 1.00 to 1.10 dollars) (forecast: 1.05 dollars)

・Sales: 31.6 to 3.21 billion dollars (conventional: 29.6 to 3.08 billion dollars) (forecast: 3.02 billion dollars)

(Source; Moomoo Securities quoted from MINKABU PRESS Editorial Department)

Stock prices rose 27% overtime in response to the company's strong financial results. Please see image 1 below for price movements. The company's closing price in the US market on February 7 was 77.01 dollars, but at one point, it soared to 126.585 dollars. In other words, it's temporary,An explosion of as much as 64%It became.

Haas CEO of Arm said, “The smartphone market is currently less than one-third of our sales, so howIt shows whether diversified investment has been successful” he said. Meanwhile, with regard to smartphones, more of the company's technology has come to be used in one unit, and it is said that it also contributes to raising loyalty.

(Source; Moomoo Securities quoted from MINKABU PRESS Editorial Department)

I visited the official website of the company in England in order to investigate the company's performance and future potential. As of 2016, CPUs were being handled, and the ratio of mobile devices such as smartphones was high as products, and it seems that it was over 70%. Recently, it has expanded into fields such as automobiles and the cloud, and it has been learned that the ratio is increasing.

I don't think the smartphone market will decline drastically for a while in the future. However, depending on the international situation and market conditions, it is also expected that the number of units sold will not grow as expected if you are dependent only on smartphones. Therefore, the company is probably trying to expand products in fields that are likely to grow significantly in the future, such as the cloud. It can be said that there is a high possibility that companies that have strengths in the conventional field and focus on business categories that are likely to be in the spotlight in the future will continue to grow over a long period of time.