35 Chip Stocks Powering AI Boom

22. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 38

Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. Raymond James recently started coverage of the British company with an Outperform rating and a $160 price target. The analysts at the advisory noted that Arm, as the dominant supplier of energy-efficient processor/subsystems IP, was well-positioned to benefit from rapid growth of generative Al in the cloud and at the edge. The analysts expect content increases in mobile along with higher penetration of ARM architecture in auto, data center and PC markets to drive sustainable double-digit growth for the next several years.

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.