ARM.US Overview

Market Performance: US stocks showed mixed results, with the DJIA slightly up by 17 points, while the Nasdaq and S&P 500 closed down 273 points and 37 points, respectively, as investors reacted to corporate earnings and economic data.

NVIDIA's Earnings Impact: Despite NVIDIA's profit nearly doubling and strong revenue growth in its data center business, its stock fell by 5.5% after earnings, contributing to a decline in other chip stocks like Broadcom and AMD.

Economic Data: Factory Orders in the US for December decreased by 0.7%, which was worse than the forecasted decline of 0.5% and significantly lower than the previous month's increase of 2.7%.

Tech Stock Movements: Major tech companies experienced varied performance, with Tesla, Alphabet, Amazon, and Apple all declining, while Meta and Microsoft saw slight gains of less than 1%.

Market Performance: The CRB metals index surged by 10% at the start of 2026, indicating strong performance in the commodities market, particularly metals.

Investment Focus: HSBC Global Research favors commodities with structural demand and limited supply, highlighting copper, aluminum, precious metals, and battery raw materials.

Driving Forces: The current commodity cycle is supported by four key factors: AI and data centers, electric vehicle (EV) demand, energy storage systems, and themes of de-dollarization and safe-haven demand.

Recommended Stocks: Analysts from HSBC identified six stocks for metals and mining investments, including ZIJIN MINING, Freeport-McMoRan, VALE S.A., Sibanye, Northam Platinum, and Arm Holdings.

Market Reaction to Trump's Announcement: US President Donald Trump announced a pause on new tariffs for Europe and a framework agreement regarding Greenland, resulting in a significant rise in market sentiment, with major US indices posting substantial gains.

Stock Performance Highlights: The DJIA surged over 800 points, closing at 49,077, while the S&P 500 and Nasdaq also saw notable increases, with tech stocks, particularly chip manufacturers like NVIDIA and Intel, leading the rebound.

Gold and Silver Market Update: Gold prices surpassed USD 4,700 per ounce for the first time, while silver experienced a slight decline from its recent high.

Tech Stocks Surge: Major tech companies saw impressive stock performance, with Intel reaching a new 52-week high and other firms like AMD and Micron also experiencing significant gains.

AI Data Center Boom: The surge in AI data center construction is leading to a decrease in memory chip supply, which may result in higher prices for consumer electronics like smartphones and PCs.

Semiconductor Industry Concerns: Major semiconductor companies, including Arm, Qualcomm, and Samsung, have expressed concerns that the demand for AI infrastructure is straining the availability of components necessary for mobile devices and home electronics.

Investment in AI Infrastructure: Companies such as Alphabet, Amazon, Meta, and OpenAI have committed significant investments to build data centers aimed at supporting advanced AI technologies, anticipating a transformative impact on various industries.

Market Implications: The ongoing developments in AI and data center construction are likely to influence the semiconductor market and consumer product pricing throughout the year.

ARM's New Division: ARM has restructured to create a Physical AI division, focusing on expanding its presence in the robotics market.

Business Lines: The company will operate three main business lines: cloud and AI, edge computing for mobile devices and PCs, and Physical AI that integrates robotics and automotive sectors.

Federal Reserve Chairman Speculation: Reports suggest Kevin Hassett, White House National Economic Council Director, may be appointed as the next Federal Reserve Chairman, boosting market expectations for a US rate cut and leading to a rebound in US stocks.

Stock Market Performance: The S&P 500 rose by 0.9%, the DJIA gained 1.4%, and the Nasdaq increased by 0.7%, marking a positive trend for major indices after early declines.

Non-Farm Payrolls Data: The US Non-Farm Payrolls for September showed an increase of 119K, significantly higher than the previous -4K and exceeding the forecast of 50K.

Tech Stocks Movements: Meta is reportedly considering a significant investment in Alphabet's AI chips, leading to stock increases for both companies, while Nvidia and other chip stocks experienced declines.