Arm Holdings (ARM)

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.

The major issue is that it has a very small public float. The valuation is very high and there is a demand/supply issue. He is considering selling it but likes the space.

It's one year after it went public. ARM has rallied 10% in the last week, even slumping 6% today after reports of Apple iPhone's weak orders, which contains ARM's chips. He doesn't mind that, because ARM is up 175% since its IPO.

Shares slumped badly in recent weeks, but rebounded 7% today because is using their processors' design in the new iPhone unveiled today. But this was not news. Is up 146% since debuting last year. Huge upside. Buy dips.

Into processing chips with different technology. The AI boom means a plethora of chips will be sold over the next decade, with upside for all stocks. Hasn't done a deep dive, but it's conceptually a good stock.

Company taking market share in CPU sector. Business is very strong - yet stock has 48% the last few months. Company is reporting next week. Overall, the company is doing well - perhaps analysts just got ahead of themselves. 

He bought a small position and shares took off immediately. He's waiting for this to stabilize. There's much talk about its March 12 lock-up period to end. These kind of stocks are volatile, so manage your risk. His holding is small enough to withstand volatility, but he will hold it for 3-5 years and he expects shares to rise 4x.