8 Most Profitable New Stocks To Invest In

4. Arm Holdings (NASDAQ:ARM)

TTM Net Income: $424 million

Number of Hedge Fund Holders: 38

Arm Holdings (NASDAQ:ARM) is a British semiconductor company that designs and licenses the architecture for microprocessors used in electronic devices like smartphones, tablets, and computers. Its technology is widely adopted by chip manufacturers due to its energy efficiency and performance. It has recently been gaining market share in automotive and cloud services.

The company’s partnership with Apple on the iPhone 16 has significantly boosted its stock price. Its leadership in mobile and AI technology is demonstrated by its Axion processor, Ethos-U85, and Windows on Arm. With a strong developer network and growing market presence, it is well-positioned as a foundational compute platform across various sectors. Its recent addition to the PHLX Semiconductor Sector Index reflects its rapid growth and diversification.

Its FQ1 2025 revenue reached a record $939 million, up 39% from the previous year. Licensing revenue grew 72%, and royalty revenue increased 17%. The adoption of Armv9 architecture and a recovering smartphone market drove royalty revenue growth. Smartphone royalty revenue increased over 50% compared to the prior year, even though unit sales only grew slightly. It has a dominant position in mobile applications, with a 99% market share.

The company is integrating its Kleidi AI acceleration technology with PyTorch and ExecuTorch to bring AI and machine learning workloads to Arm-based hardware, enabling Arm CPUs to run LLMs. Its latest processor design, v9, features significant upgrades that have doubled its take rate. Its strong market position, innovative technology, and strategic partnerships position it for continued growth.