Why Is Arm Holdings Stock Trading Higher On Monday?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 03 2024
0mins
Should l Buy AMD?
Source: Benzinga
- ARM Stock Performance: ARM Holdings Plc stock is up after a sector selloff due to U.S. sanctions on the Middle East regarding AI chips.
- AI Readiness: CEO Rene Haas predicts 100 billion Arm devices globally ready for artificial intelligence by the end of 2025.
- Analysts' Projections: Analysts are optimistic about Arm Holdings, highlighting licensing interest, royalties, and potential in AI and datacenter markets.
- Future Plans: Arm Holdings plans to launch an AI chip in 2025 and commercialize it by fall 2025, with SoftBank eyeing investments in data centers powered by AI chips.
- Competition with AMD: Advanced Micro Devices hints at entering the next-generation AI PC market, setting up a potential rivalry with Arm.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 455.190
Low
210.00
Averages
289.13
High
377.00
Current: 455.190
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Profitability Improvement: AMD's non-GAAP earnings per share reached $1.37 in Q1, a 43% year-over-year increase, and despite a P/E ratio of 92, nearly double that of Nvidia, there is still potential for upside in the next 18 months, attracting long-term investor interest.
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- Market Growth Potential: GF Securities forecasts the server CPU market will expand from $26 billion in 2025 to $135 billion by 2030, reflecting a compound annual growth rate of 38%, indicating a surge in hardware demand driven by rapid AI infrastructure development.
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- Intel's Growth Outlook: Concurrently, Intel's data center and AI segment is expected to grow by 39% in 2026, demonstrating its strong competitive position in the AI-driven market, allowing it to benefit alongside AMD from this trend.
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