economy
We're raising our price target on chipmaker Arm after its blistering rally
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- Stocks are on track for a positive finish, with the S&P 500 likely to achieve a fourth consecutive weekly gain.
- Intel's strong quarter and commentary on the CPU market have boosted chip stocks.
- Agentic AI is leading to a more balanced mix of CPUs and GPUs in AI clusters, a trend underestimated by the market.
- Arm Holdings, a provider of CPU designs, has seen its stock rally over 30% since the Investing Club established a new position.
- The Investing Club has raised its price target on Arm to $250 but downgraded its rating due to the stock's parabolic rise.
- Amazon's AWS Graviton and Alphabet's Google Axion, both Arm-based CPUs, are giving these hyperscalers an edge.
- Meta has agreed to deploy tens of millions of Arm-based Graviton cores.
- The upcoming week is packed with earnings reports from major companies, including Alphabet, Amazon, Meta, Microsoft, and Apple.
- The Federal Reserve's April policy meeting, Jerome Powell's last as Fed chair, will also take place next week.