Arm Holdings Plc (ARM) is experiencing a surge in its stock price on Monday, fueled by reports indicating that its cutting-edge AI chip technology will be featured in the highly anticipated iPhone 16.
The new iPhone is set to unveil Apple’s (AAPL) A18 chip, based on Arm’s V9 architecture, at an event scheduled for Monday at Apple’s headquarters in Cupertino, California. According to The Financial Times, the V9 architecture, initially introduced in 2021, was previously incorporated into Apple’s M4 MacBook chips. This strategic move by Apple signifies a shift towards a more AI-focused product strategy.
Arm’s CEO, Rene Haas, has shared that the adoption of Arm’s V9 architecture is expected to translate into a substantial increase in royalties for the company, potentially doubling its earnings compared to its previous V8 architecture. This anticipated surge in revenue is further amplified by Apple’s recent push towards AI-driven features.
In June, Apple unveiled a suite of features, collectively branded as Apple Intelligence, offering free access to OpenAI’s ChatGPT. These features, currently available on a limited range of iPhone models, have spurred Apple to accelerate its chip technology advancements in upcoming iPhones.
For investors looking to gain exposure to Arm Holdings, there are multiple avenues beyond directly purchasing shares. Exchange-traded funds (ETFs) that hold Arm stock, or strategies within a 401(k) plan that invest in mutual funds or other instruments within the Information Technology sector, can provide exposure to the company.
At the time of publication, Arm stock was trading 5.52% higher at $123.77 per data from Benzinga Pro. This surge in stock price underscores the market’s confidence in Arm’s innovative technology and its potential to play a significant role in the future of mobile computing.
