Arm Stock News

Before considering which semiconductor stocks to buy on the dip, it's important to understand why chip stocks have been falling since the beginning of July. Consider three intertwined reasons.

Last week witnessed a sharp decline in major stock indexes following a disappointing jobs report that heightened concerns over a potential recession. This market downturn, highlighted by downgraded stocks, which was mostly evident on Friday, marked a deviation from the generally robust performance stocks had exhibited earlier in the year.

Arm Holdings isn't your typical semiconductor company. Its business model is tremendous, and it has AI tailwinds.

Arm Holdings delivered impressive revenue growth last quarter and it is building a robust revenue pipeline thanks to the growing demand for its AI-specific chip architecture. AMD's latest results also provide evidence of the company's growing influence in the AI chip market.

For many investors, the conversation around the semiconductor industry isn't always the clearest. Some companies are fabricators, others are designers, and then there's Arm Holdings (NASDAQ: ARM ) which is a designer for designers, which puts ARM stock in an interesting position.

A Wall Street analyst upgraded Arm. The stock has been weighed down by the recent rout in the technology sector.

Arm Holdings PLC (NASDAQ: ARM) is emerging as a formidable contender in the server chip market, with the potential to disrupt the dominance of Intel and Advanced Micro Devices (AMD).

Things have taken a turn for the worst in the stock market. After a pronounced selloff on Aug. 2, U.S. indices have continued to fall, with the the technology-heavy Nasdaq Composite index and blue-chip Dow Jones Industrial Average each falling more than 1,000 points at one point on Aug. 5.