Arm Holdings Plummets 40% Amid the Sell-Off, Is It a Strong Buy Now?
Semiconductors are among the most essential technologies on the planet. They enable everything from thermostats to smartphones to autonomous vehicles. Now, artificial intelligence (AI) demands even higher performance. These high-performance products are so important that there is geopolitical tension between the U.S. and China related to import and export bans and Taiwan, where most of the world's semiconductors are manufactured.
Because of the high demand and healthy tailwinds, many industry stocks, including Arm Holdings (NASDAQ: ARM), took off in 2024. The enthusiasm pushed Arm's valuation to nosebleed levels, but the recent market sell-off has pulled Arm down nearly 40% from its recent highs, as shown below.
Source Fool.com