Semiconductor producers Qualcomm (QCOM) and Arm Holdings (ARM) recently reported their quarterly earnings. Qualcomm reported strong first-quarter earnings results Wednesday, while Arm also delivered an earnings beat on the top and bottom lines. Arm’s third quarter adjusted earnings per share (EPS) came out to be $0.39 (compared to the $0.34 projected) while revenue was $983 million (higher than the $946.8 million expected).
Moor Insights & Strategy founder, CEO, and chief analyst Patrick Moorhead joins Market Domination Overtime to give insights on the two chip stocks’ post-earnings performances.
Despite a solid quarter, Arm’s stock dipped due to concerns over its valuation and EPS guidance. As Moorhead explains, "Arm is a company that’s investing ahead. It’s likely more R&D, more engineers — but it’s a very expensive stock."
He also suggests that more details on Arm’s Stargate project, alongside Microsoft (MSFT), Nvidia (NVDA), OpenAI, and Oracle (ORCL) — could help boost its stock.
Regarding Qualcomm, Moorhead notes that while Apple’s (AAPL) in-house modem could pose a challenge, "Qualcomm has been prepared for a scenario where there is no more Apple business," Moorhead says. He also highlights Qualcomm’s successful diversification, with significant growth in its automotive segment.
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