Arm Holdings (ARM-Q)

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.

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.