ARM HOLDINGS (#ARM) weekly special report based on 1 Lot Calculation:
ARTIFICIAL INTELLIGENCE
- AI: ACCORDING TO THE INTERNATIONAL DATA CORPORATION, COMPANIES WILL SPEND $500 BILLION BY 2027, WHICH COULD SEE DEMAND FOR ARM’S CPU PRODUCTS: ARM designs chip architecture for all the major companies, and is the most dominant chip designer in the world. ARM designs chips for Apple, Amazon, Nvidia and AMD just to name a few.
- ARM IN THE CHIP INDUSTRY: As a chip designer, ARM plays an integral role in the artificial intelligence space, as all companies that develop and sell artificial intelligence chips are likely using a chip architecture designed by ARM. While ARM is more focused on Central Processing Units (CPU) chips, its dominance is colossal. According to reports, 30 billion chips worldwide used ARM technology.
ARM: THE COMPANY
- ARM is not a chipmaker itself. Rather, the company is responsible for coming up with the “architectures” — or overall designs, including components and programming language instructions that other companies use to build chips. Today, 99% of smartphones use ARM processors. (Source: Financial Times)
ARM AND NVIDIA
- IPHOINE 16 WAS DEVELOPED USING ARM’S NEWEST V9 CHIP DESIGN. Apple’s latest iPhone with its A18 chip, has been developed using Arm’s newest V9 chip design. Arm had said in July that its V9 chip accounts for 50% of smartphone revenue. Apple signed a deal with Arm in September last year that "extends beyond 2040" in a boost for Arm for chip technology.
- ARM AND NVIDIA, HISTORICALLY, MOVE IN THE SAME DIRECTION: Nvidia and ARM have historically exhibited strong correlation in price action, with a correlation coefficient of 0.74. This is primarily because both companies operate in the chip production space, as Nvidia depends on ARM for their chip designs.
- NVIDIA EARNINGS RESULTS (Q2) BEAT EXPECTATIONS. Nvidia has delivered impressive financial results, surpassing expectations in both revenue and earnings per share. The company reported a revenue of $30.04 billion, exceeding the anticipated $28.7 billion, and earnings per share of $0.68, surpassing the projected $0.64. Additionally, Nvidia has provided strong forward guidance, forecasting approximately $32.5 billion in revenue for the current quarter, which is higher than the $31.7 billion analysts had expected. This optimistic outlook reflects Nvidia's robust performance and continued confidence in its market position. (Source: Bloomberg Terminal)
ARM: PRICE ACTION
- RECENT MARKET CORRECTION: ARM LOST 48.47% FROM JULY 9 TO AUGUST 5. The stock fell from $188.48 to $97.13 (three-month low). Since August 5, Arm has recovered by around 29%, trading currently around $125.5 a share.
- THE STOCK HAS TRADED AROUND 32% BELOW ITS ALL- TIME HIGH OF $188.48 (July 9, 2024). Arm was last trading around $125.5, and if a full recovery follows recent all- time highs, the stock could see an upside of around 50.4%. However, the price could decline further.
- ANALYSTS OPINIONS: Morgan Stanley forecasts $175. Jeferries forecasts $170. Citigroup forecasts $170. Rosenblatt forecasts $180.
ARM, September 10, 2024
Current Price: 125.50
|
Arm |
Weekly |
|
Trend direction |
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|
200 |
|
|
180 |
|
|
150 |
|
|
105 |
|
|
100 |
|
|
95 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
Arm |
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|
Pivot Points |
||||||
|
Profit or loss in $ |
74,500.00 |
54,500.00 |
24,500.00 |
-20,500.00 |
-25,500.00 |
-30,500.00 |
|
Profit or loss in €² |
67,546.13 |
49,412.94 |
22,213.16 |
-18,586.52 |
-23,119.82 |
-27,653.11 |
|
Profit or loss in £² |
56,921.72 |
41,640.72 |
18,719.22 |
-15,663.02 |
-19,483.27 |
-23,303.52 |
|
Profit or loss in C$² |
101,132.63 |
73,982.93 |
33,258.38 |
-27,828.44 |
-34,615.87 |
-41,403.29 |
- 1.00 lot is equivalent of 1 000 units
- Calculations for exchange rate used as of 08:10 (GMT) 10/09/2024
There is a possibility to use Stop-Loss and Take-Profit
- You may wish to consider closing your position in profit, even if it is lower than the suggested one.
- Trailing stop technique could protect the profit