Coatue’s 35 Most Important AI Stocks

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32. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 38    

Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. The company demonstrated a strong year-over-year growth in royalty revenue and annualized contract value (ACV) in the second quarter of 2024. Revenue rose 5% year-over-year to $844 million due to record levels of royalty revenue and continued strength in license revenue. Royalty revenue rose 23% year-over-year to $514 million, driven primarily by the continued adoption of Armv9 and smartphone market recovery. During the quarter, the company and Meta also announced the optimization of Meta’s Llama 3.2 for Arm CPUs. The optimization of Meta’s new Llama 3.2 3B LLM with Arm’s Kleidi AI libraries has driven a 5x improvement in time to first token processing and a 3x improvement in token generation compared to Llama 3.2 without Kleidi. The company also plans to extend momentum in the automotive market with leading Armv9 AI-enabled ADAS and IVI solutions.

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