Jim Cramer’s Bearish Calls: 10 Tech Stocks Heading for a Crash

6. ARM Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders In Q3 2024: 68

Date of Cramer’s Comments: 08-22-24

Performance Since Then: -2.20%

ARM Holdings plc (NASDAQ:ARM) is a British chip design house whose IP is present in the majority of smartphone processors and other chips. This enables the firm to enjoy a wide moat, which has strengthened in today’s era of data centers and cloud computing. Big tech firms have used ARM Holdings plc (NASDAQ:ARM)’s designs to make in-house chips. The firm has also sought to further solidify its market presence by providing an off-the-shelf solution to firms looking to design chips. However, ARM Holdings plc (NASDAQ:ARM)’s shares are down by 16% over the past six months as they have been driven by the firm’s inability to significantly benefit from the ongoing AI boom despite its near-ubiquity in the smartphone industry. In August, Cramer shared that he preferred ARM Holdings plc (NASDAQ:ARM) over Intel, and the latter’s stock has lost 5.6% since his comments:

“Intel is struggling with competition from AMD and Nvidia, and I prefer ARM Holdings over Intel in the current tech landscape. Intel has challenges but may benefit if it can leverage AI advances effectively.”