I Was Dead Wrong About Arm Holdings and Its Artificial Intelligence (AI) Prospects. Here's Why.
When a business first goes public, analysts and financial writers -- myself included -- race to read through the regulatory filings, which are often more than 100 pages long. Poring over the recent financial results, discerning the addressable market, and understanding where the company fits into the overall ecosystem are all puzzle pieces that help provide insight into the company's future.
It's that last piece that I got wrong when I first read up on Arm Holdings (NASDAQ: ARM) late last year. I fully understood the company's dominance in providing central processing units (CPUs) to the smartphone industry but didn't make the connection to how Arm would benefit from the tidal wave of demand in the field of generative artificial intelligence (AI). At the time, I wrote, "Arm Holdings is trying to cast itself as the next Nvidia -- but wishing doesn't make it so."
Let's take a look at the company, how I got it wrong, and what I believe it means for investors now.
Source Fool.com
