Arm Holdings stock has surged 50% while Advanced Micro Devices has dropped 10%

From Nasdaq: 2024-08-09 17:15:00

In 2024, Arm Holdings (ARM) stock has surged 50% while Advanced Micro Devices (AMD) has dropped 10%, despite AMD reporting strong sales growth in data center chips. Both companies are benefiting from the demand for AI chips, with Arm delivering record revenue of $939 million in Q1 and AMD expecting $4.5 billion in data center GPU sales this year.

Arm Holdings doesn’t manufacture chips; instead, it licenses chip architecture to OEMs. In Q1 of fiscal 2025, Arm saw 39% revenue growth, as licensing revenue surged 72% to $472 million thanks to increased AI-related demand. Arm’s Armv9 architecture now accounts for a quarter of its royalty revenue, with 100 billion Arm-based AI chips expected to be shipped by the end of fiscal 2026.

AMD’s data center revenue grew 115% year over year to $2.8 billion in Q2, with plans to sell at least $4.5 billion worth of data center GPUs in 2024. The client segment revenue jumped 49% year over year to $1.5 billion, as the PC market recovers and AI-capable offerings gain traction. AMD’s AI-powered Ryzen processors are expected to power over 100 PC designs in the near future.



Read more at Nasdaq: Better Artificial Intelligence (AI) Stock: Arm Holdings vs. Advanced Micro Devices