$ARM Holdings(ARM)$  $Leverage Shares 2X Long ARM Daily ETF(ARMG)$ $T-Rex 2X Long ARM Daily Target ETF(ARMU)$ 

ARM Breaks Out: Powering AI’s Next Decade 💡📈🚀

📊🔍 $ARM Testing a Breakout with Upside Potential

$ARM designs the fundamental architectures that power modern processors, licensing its low-power, high-efficiency designs to industry leaders across mobile, cloud & AI computing 🤖☁️ ARM is showing strength on the daily chart, breaking above $119 resistance earlier, after forming a descending triangle throughout 2024–2025. Rising volume and bullish momentum suggest a potential move towards $140 if it holds above this level, a 17% upside from the breakout point. Traders can set a tight stop below $115 for a low-risk entry, offering a solid risk-reward setup in a volatile market. As a leader in semiconductor design, ARM’s chips power AI and mobile tech globally, making this breakout a pivotal moment to watch.

ARM's commanding NTM P/E ratio of 82x, as per IwtB, eclipses peers like PI (73x) and Intel (49x), reflecting a market narrative that positions ARM as the vanguard of semiconductor innovation, particularly in mobile and AI-driven paradigms.

🌊📉 Flow-On Effects for $ARMG and $ARMU

ARM’s momentum could lift related ETFs. $ARMG, a 2x leveraged ETF tracking ARM, closed at $9.99 on 21Mar25 (daily high $10.03), down from a 1-month peak of $15.38. A sustained breakout in ARM could drive $ARMG towards $12–$14 in the near term, reflecting its amplified sensitivity to ARM’s price action. Meanwhile, $ARMU, closing at $23.569 on 21Mar25 (daily high $23.58), has seen a 1-month range of $21.22 to $27.08. As ARM’s tech sector influence grows, $ARMU could attract steady buying, potentially testing $25 if positive sentiment holds through Q4 2025.

💻🌍 Catalyst: Malaysia’s $250M AI Chip Deal 🇲🇾

On 5Mar25, Malaysia committed $250M over 10 years to ARM for AI chip designs, aiming to produce its own GPUs and bolster its semiconductor industry. This deal positions ARM at the heart of Malaysia’s tech ambitions, especially as tech giants like Microsoft, Nvidia, and Google invest in the region’s data centres. ARM’s strong fundamentals support this momentum, Q3 2024 revenue rose 19% to $983M, beating estimates of $949.3M, with mid-20% growth projected for fiscal 2025, driven by AI and data centre chip demand. This growth trajectory could provide a tailwind for ARM’s price action following the breakout.

📉⚖️ Risks in the Current Market

The broader market remains challenging, with the S&P 500 down 8% from its February 2025 high as of 18Mar25, and a projected 1.8% GDP contraction for Q1 2025 (Atlanta Fed estimate). ARM’s high P/E ratio (~70 as of 21M25) makes it vulnerable to sentiment shifts, particularly if tech valuations face further pressure in this economic environment. Supply chain constraints in the semiconductor space could also pose near-term challenges, though ARM’s design-focussed business model mitigates some risks compared to manufacturers.

🔮📅 Near-Term Outlook: A Key Q4 2025 Opportunity

With the $119 breakout in play, ARM’s next resistance lies near $140, a level last tested in mid-2024 before the descending triangle formed. A move to this target could be fuelled by continued AI chip demand and positive sentiment from the Malaysia deal, though traders should watch for broader market volatility impacting tech stocks. $ARMG and $ARMU offer leveraged or diversified exposure, allowing traders to capitalise on ARM’s momentum while managing risk in this uncertain climate.

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Happy trading ahead! Cheers, BC 📈🚀🍀🍀🍀

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