14 Best New Tech Stocks To Buy Now

4. Arm Holdings (NASDAQ:ARM)

Market Capitalization as of September 13: $151.43 billion

Number of Hedge Fund Holders: 38

Arm Holdings (NASDAQ:ARM) is a semiconductor IP (Intellectual Property) and software design company whose primary business is the design of central processing unit cores that implement the ARM architecture family of instruction sets. It designs and licenses the underlying technology for microprocessors, which are used in a wide range of devices, including smartphones, tablets, laptops, and embedded systems.

FQ1 2025 revenue grew 39% year-over-year to $939 million, the highest quarterly revenue to date and exceeded the company’s guidance. The earnings per share were $0.40, also beating Street estimates by $0.05. Investors have positive sentiments towards the company as we see that is it held by 38 hedge funds, as of June 30.

Licensing revenue increased 72%, while royalty revenue rose 17%. The FQ1 royalty revenue growth was fueled by continued Armv9 adoption and a recovery in the smartphone market, with smartphone royalty revenue increasing over 50% year-over-year despite only a mid-single-digit rise in units sold. Additionally, the company is gaining market share in automotive and cloud services, although challenges persist in IoT and networking equipment due to ongoing inventory corrections in the industrial sector.

The company’s recent advancements, including the launch of the Axion processor and Ethos-U85 for edge AI, highlight its strong position in the rapidly growing AI market. The introduction of Windows on Arm PCs and ongoing demand for compute subsystems across mobile, cloud, and automotive sectors further solidify its role as a leader in the tech ecosystem.

With a vast network of over 20 million software developers and a robust software ecosystem, Arm Holdings (NASDAQ:ARM) is well-equipped to drive future growth and innovation in AI applications.