33 Most Important AI Companies You Should Pay Attention To

Page 28 of 30

3. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 29

YTD Return as of August 1: 163%

Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. The microprocessors marketed by the firm are used by companies who make smartphones, laptops, automotive systems, and cloud data centers. The firm licenses the designs to manufacturers, generating revenue from these licenses and from royalties on the products sold. It has a strong presence in the AI market, evidenced by recent AI-linked agreements with tech giants like Google and Amazon. The company is expected to grow revenues at a compound annual rate of over 30% in the coming months due to AI demand.

Rene Haas, the CEO of Arm Holdings plc (NASDAQ:ARM), said during the first quarter earnings call that companies everywhere were investing in AI, driving revenue and bookings for his firm which posted a fourth consecutive quarter of record earnings, growing revenue by 39% year-on-year. License revenue during the period was up 70% year-on-year while royalty revenue was up 17% year-on-year.

Page 28 of 30