To The Moon

I am continuing to collect ARM at this stage because the recent pullback is giving me a much better technical entry point. The share price has moved back toward the EMA200, which is an area I like to watch for longer-term positions. I do not see this pullback as a reason to abandon the thesis. Instead, it gives me an opportunity to build my position gradually rather than chasing strength. For me, the combination of a key technical support area and a long-term semiconductor growth story makes the risk-reward more interesting here.

Fundamentally, Arm is becoming much more than a smartphone chip-IP company. Its royalty business continues to benefit from the wider adoption of Armv9, while data-center royalties are becoming an increasingly important growth driver. In fiscal Q1 2027, revenue reached $1.29 billion, up 22% year over year, with data-center royalty growth particularly strong. This is important to me because royalties create a more scalable and recurring revenue stream as more Arm-based chips are shipped.

The bigger opportunity is AI infrastructure. Arm's Neoverse architecture is increasingly being used in cloud and data-center CPUs, while its new Arm AGI CPU gives the company another way to participate in the AI spending cycle. Arm has indicated more than $2 billion of committed demand for its AGI CPU through FY2027–2028, although supply and execution remain risks. I also like the broader optionality across edge AI, automotive, robotics and physical AI. Arm recently expanded its portfolio in these areas, including its physical AI ecosystem with more than 80 partners.

Of course, valuation is still the main risk, and I am not treating ARM as a cheap stock. That is exactly why I prefer collecting during meaningful pullbacks instead of buying aggressively after big rallies. My approach is to accumulate gradually and give the fundamentals time to catch up with the valuation. If ARM continues gaining share in data centers, AI and edge computing while royalty revenue compounds, I believe today's pullback could eventually look like a useful entry point. For me, this is another case of patience over FOMO: I would rather keep collecting quality semiconductor exposure near major technical support than chase the next breakout.

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