Semiconductor firm Arm Holdings (NAS100:ARM) could see its share price rally to previous highs if the Q1 earnings give a boost.
The price of ARM shares have found strong support at $86 and there is little resistance up the $163.50 level. A positive earnings call could see the price rally to that mark.
US analyst Jim Cramer is positive on ARM, saying the company is involved “in everything”.
“What else? Can Arm Holdings mount a comeback without strong cell phone sales? I think the year when we realized, this is it, this is the year we realize that Arm’s in everything. It deserves a higher price-to-earnings multiple”.
Arm Holdings is engaged in creating and licensing CPU designs and related technologies. Cramer told a caller:
“Oh no… I want you to stay in it. Rene Haas is doing a great job. I think that this whole semiconductor group has been oversold. It will bounce, and when it bounces, you want to trim back because it is expensive. That’s fine. Do not sell it here”.
During Q3 the company achieved revenue of $983 million, up 19% year-over-year, beating management guidance. In addition, royalty revenue also reached an all-time high of $580 million. Management noted that this growth was driven by the widespread adoption of the company’s latest Armv9 architecture and the growing deployment of Arm Compute Subsystems. Both technologies are the foundation for AI and high-performance computing applications.
Arm is also a top holding among the hedge fund community due to its ability to sidestep some of the tariff and trade turmoil.
