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Why Arm Holdings plc (ARM) Is Among the Best New Tech Stocks to Invest In

Wesley ParkFriday, Jan 24, 2025 4:00 pm ET
3min read


Arm Holdings plc (ARM) has been making waves in the tech industry, and for good reason. With its dominant market position, broad customer base, and strong growth prospects, ARM is a standout among new tech stocks. Let's dive into the factors that make ARM an attractive investment opportunity.



Dominant Market Position

ARM's processor IP is found in over 160 billion chips shipped to-date, making it the leading provider in its market. This dominant position ensures a steady revenue stream from licensing fees and royalties, providing a solid foundation for growth. ARM's technology is used by a wide range of customers, including major chipmakers and OEMs, across various industries such as smartphones, IoT, and AI. This diversification reduces the risk of relying on a single customer or industry, further enhancing ARM's investment potential.

Broad Customer Base

ARM's broad customer base spans industries and geographies, providing resilience against market fluctuations. Its customers include major tech companies like Apple, Samsung, and Huawei, as well as numerous other chipmakers and OEMs. This diverse customer base ensures that ARM is well-positioned to capitalize on growth opportunities in emerging markets, such as the Internet of Things (IoT) and artificial intelligence (AI).

ARM
Name
GICS Industry
Arm HoldingsARM
Semiconductors & Semiconductor Equipment


Strong Growth Potential

ARM's latest AI-optimized chip architecture, Armv9, is gaining traction in the smartphone market and is expected to drive growth in demand for its products. Additionally, ARM's involvement in the Stargate joint venture, which aims to invest $100 billion in AI infrastructure in the U.S., further boosts its growth prospects. ARM's strong financial performance, with earnings and revenue growth rates of 31.2% and 18.2% per annum, respectively, and a forecasted return on equity of 27.1% in 3 years, underscores its potential for long-term growth.

Strategic Acquisitions

ARM has completed 25 acquisitions with an average acquisition amount of $392M, expanding its product offerings and market reach. Its most active year was 2015, with 4 acquisitions, indicating a proactive approach to growth. These acquisitions have allowed ARM to enter new markets and strengthen its position in existing ones, further enhancing its investment potential.

Strong Partnerships

ARM has established strategic partnerships with major tech companies, such as NVIDIA, SoftBank, and Raspberry Pi. These partnerships enhance ARM's market position and growth potential by providing access to new technologies, markets, and resources. For example, ARM's partnership with NVIDIA, which acquired ARM in 2023, has led to the expansion of R&D and the integration of NVIDIA's GPU and AI technology with ARM's CPU designs.

In conclusion, ARM Holdings plc (ARM) is among the best new tech stocks to invest in due to its dominant market position, broad customer base, strong growth potential, strategic acquisitions, and strong partnerships. Its unique business model, which relies on licensing and royalty revenues, provides a stable foundation for growth and resilience against market fluctuations. As ARM continues to innovate and expand its offerings, it is well-positioned to capitalize on growth opportunities in emerging markets and maintain its leadership in the tech industry.
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AGNES MORALES
01/25

Weeks ago I started my trading journey with $1000 and didn’t have much experience. After few days of consistent work and following the recommendations of Elizabeth Towles on Whatsapp +1563 279-8487,I managed to grow my account to $8850

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Mylessandstone69
01/25
@AGNES MORALES I had a similar start but sold my ARM holdings too early. Now I'm stuck with just IoT stocks. FOMO is real.
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theamykupps
01/25
@AGNES MORALES How long did it take you to grow your account from $1000 to $8850? Any tips?
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DoU92
01/24
$ARM hope you didn't buy at 180
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Corpulos
01/24
@DoU92 How long you been holding ARM? You think it's still a good entry point now?
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Bradley Carson
01/24

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HairyBallsOfTheGods
01/25
@Bradley Carson 💸
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SocksLLC
01/24
ARM's IP dominance = solid long-term hold
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Sensitive_Chapter226
01/24
ARM's diversity in customers is like having a safety net. Risk spread thin, making it a solid long-term play.
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Running4eva
01/24
Stargate joint venture is a game-changer
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Protect_your_2a
01/24
ARM's growth rates are 🔥. 31.2% earnings and 18.2% revenue annually? That's what I call scaling.
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BoomsRoom
01/24
Diversified customers, less risk, more gains
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Arturs727
01/24
ARM's tech is everywhere, bro. 160 billion chips shipped? That's wild. They're basically the CPU cops.
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Buffet_fromTemu
01/24
AI push with Armv9 is bullish 🤔
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Sam__93__
01/24
Stargate joint venture sounds big. $100B for AI infra? ARM's playing in the major leagues now.
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Martin sivestz
01/24

Catherine E. Russell is a prominent investor in the cryptocurrency space, known for her insightful strategies and deep understanding of the rapidly evolving digital asset market. With a strong focus on Bitcoin and other major cryptocurrencies, she navigates the complexities of blockchain technology, market cycles, and regulatory landscapes to make informed trading decisions. Catherine approach combines technical analysis with a keen eye on macroeconomic trends, allowing her to identify long-term opportunities while managing risk in the volatile crypto market. Her trading style emphasizes patience and adaptability, helping her capitalize on both bullish trends and market corrections. Investors following her moves are often drawn to her disciplined yet forward-thinking approach to crypto trading... Inbox 👍 Catherine E. Russell on Facebook.. For more guide 🙏💯

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Working_Initiative_7
01/24
$ARM outperforming $TSLA lately, interesting switch-up
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