Arm Holdings Plc (NASDAQ:ARM) stock is trading higher on Monday following reports indicating that its AI chip technology will be featured in the iPhone 16.
The Details: The new iPhone will include Apple's (NASDAQ:AAPL) A18 chip, based on Arm's V9 architecture, and is set to be unveiled on Monday at an event at Apple's headquarters in Cupertino, California, according to The Financial Times.
Apple has previously incorporated the V9 architecture, introduced in 2021, into its M4 MacBook chips.
Arm's CEO Rene Haas shared that the use of Arm's V9 architecture is expected to result in a substantial increase in royalties, potentially doubling the earnings compared to its previous V8 architecture.
This comes as Apple is in the middle of re-defining itself as a company centered around artificial intelligence. In June, Apple announced a set of features, labeled Apple Intelligence, which includes free access to OpenAI's ChatGPT.
These new features, currently available on only a few iPhone models, have prompted Apple to advance its chip technology in upcoming iPhones.
How To Buy Arm Shares
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in ARM Holdings (NASDAQ:ARM)'s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
ARM Price Action: At the time of publication, Arm stock is trading 5.52% higher at $123.77 per data from Benzinga Pro.
Image: Courtesy of Arm Holdings Plc