Arm Stock's 46% Drawdown Tests $2 Billion Demand Claim

Ceva is combining its Ceva-Waves UWB baseband intellectual property and software with LG Electronics' ultra-wideband radio-frequency technology to offer a complete, silicon-ready solution, and a major U.S. semiconductor company has already selected the combined platform. The next-generation UWB architecture supports the latest IEEE 802.15.4ab standard and delivers improved ranging in non-line-of-sight environments, extended range, low-power operation and interference resistance, while LG's RF technology supports TSMC's 22-nanometer manufacturing process. ABI Research expects worldwide UWB device shipments to rise from 597 million in 2026 to nearly 1.18 billion by 2030, expanding licensing and royalty opportunities for Ceva. Ceva's broader connectivity portfolio spans Bluetooth, Wi-Fi, UWB, cellular IoT and 5G, and the LG partnership strengthens its competitive position across automotive, industrial and consumer end markets. Ceva currently carries a Zacks Rank #3 (Hold).

Meta Platforms launched Muse, an autonomous personal AI agent that shot to the top of the Apple App Store within a week, and the agentic AI shift is driving gains for Arm Holdings and Advanced Micro Devices. In March, Meta and Arm announced a large-scale partnership to co-develop Arm AGI CPU and multiple generations of specialized silicon for Meta's data centers, and Arm CEO Rene Haas said Arm already has $2 billion of customer demand for its new AGI CPU. SoftBank, which owns roughly 90% of Arm's shares outstanding, said it would raise Arm's loan facility to $25 billion from $20 billion, and Arm shares rose more than 10% in early trading. Meta partnered with AMD to optimize Muse Glimmer, an open-source model designed to run locally on computers, and demand for agentic AI has pushed prices for AMD server chips up about 40%. AMD CEO Lisa Su said the server CPU market could exceed $120 billion by the end of the decade, a 35% CAGR, and AMD shares broke out to all-time highs as the company crossed the $1 trillion market cap landmark for the first time.

Jim Cramer said selling Arm Holdings early was a "big mistake," noting on the September 16 episode of Mad Money that the stock has fallen 46% from its June high of $452 to just under $244. Arm's fiscal first quarter 2027 results showed total revenue of $1.29 billion, up 22% year over year, with royalty revenue up 22% to $715 million and licensing revenue up 23% to $574 million, while data-center royalties more than doubled and the company posted a non-GAAP operating margin of 41% and $665 million in non-GAAP free cash flow. Management expects Q2 FY27 revenue of $1.38 billion with a $50 million margin of error, non-GAAP operating expenses of about $780 million, and non-GAAP fully diluted earnings per share of $0.47 with a $0.04 margin of error, with results due by November 4. The stock trades at around 110x forward earnings, and short interest stood at 11.52% of the public float as of August 31, while 52 hedge fund portfolios held a stake in the second quarter, up from 46 in the prior period. Cramer argued that panicking over steep pullbacks in dominant tech leaders is a losing game, calling short-term drops buying opportunities for patient investors given Arm's royalty growth and tight supply.