Arm Holdings (ARM)

Doesn't sell or manufacture chips. Owns the blueprint instead. Almost every smartphone on the planet runs on a chip designed using its instruction set. Gets a small royalty for every chip sold, as well as upfront license fee from customers.

Story's pivoted to data centres. Data centre royalty revenue has more than doubled over past few years, and management expects it to double again. Also building its own CPUs (a big hurdle) -- akin to the "conductor" on the agentic AI workflow train.

British semiconductor software and design. He has invested in it before, but not very successfully :(  You can pick it up here ~$160, has very good support around $153, and if you got the final piece ~$145 he thinks you'll be happy.

Volatile. Because of that, you have to hold back on when you purchase it.

Last week, they unveiled its first AI CPU chip, with Meta as lead customer. Arm projects $15 billion sales in this chop within 5 years. It is a new Arm Holdings.

Chip manufacturing is a very tough business. Home run, spectacular job. Brilliant management. Might earn a better return than competitors such as TSM over the next few years. More specialized than TSM, which he owns.

Likes their business, but their valuation is high and they face competition in chip design. Great technology though. 

12-month price target of $193. February earnings report beat on top and bottom lines, guided higher. PE of almost 100x, expensive, but good runway ahead. No dividend.

A great performer but was sideways most of last year. This month already, though, it has jumped nearly 20%. Not merely a cell phone provider, but pervasive in many areas.

Softbank owns 90% of this, which is challenging. Valuation is too high, and they aren't in the AI business. But if they move into AI, it will be a game-changer. However, ARM offers best-in-breed mobile CPUs.

VRT hasn't been around that long, track record not as extensive as others in the AI infrastructure space.

He'd lean toward ARM. Likes the company, following it. Well positioned to extract value out of the AI wave. Now looking for value within the AI space for companies not as expensive as NVDA.

He expects a good report on Wednesday, but it may not matter if the overall market is down. He needs to hear about their lawsuit with Qualcomm.

May be a bit of a gift. Likes it down here between $140-145, where it has a bit of support. AAPL comes out next week on October 31, and ARM is a big supplier to them. ARM may pop then. 

Designs chips, makes blueprints, and licenses technologies. Other companies actually produce. Lots of devices, especially mobile, use their tech. Trades at 90x forward PE, 24-25% growth rate. Trades at 37x price to sales. Bit rich for him.