Jose Najarro Stocks on $ARM (Oct 31, 2026)
ARM is his third choice: a lot already looks priced in and the valuation does not fit his risk-to-reward, though he does not question its performance negatively. The upside he cites is licensing/royalty deals and an AGI CPU shipping from late 2026 with demand exceeding capacity; timing is the concern.
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AMD's stock fell by about 11%, Qualcomm's by more than 11%, and ARM's by about 10%.
And then you also have ARM, right? ARM has two different approaches to this central processing unit (CPU) market. The first is licensing fees and royalties. They work with anyone who currently manufactures a central processing unit (CPU).
Nvidia builds a lot of central processing units. Um... Google has an "Axion" processor. Microsoft has something too. Perhaps you forgot who they have. Amazon, on the other hand, has a "Graviton" processor.
All players build their own central processing units. There is some form of licensing or royalty fee depending on the partnership they have.
ARM is also developing its own graphics processor, the AGI CPU (Artificial Intelligence Processor). Sorry, CPU processor, not GPU. These products will be available for sale very soon.
Commercial shipments of the AGI CPU are expected to begin in late 2026. Currently, they have a support capacity of approximately one billion dollars. But demand is described as exceeding two billion dollars, which is at least two to one, I believe.
Therefore, the shortage may be a contributing factor or may provide an advantage to ARM. Here the issue is more related to the timing factor. For me, if I had to choose one player who could
For ARM, the partners' returns are certainly a big win. AGI CPUs will also appear in the second half of this year . Any discussions about this could be exciting for the stock .
As for ARM , it seems that a lot has already been priced in.
ARM would be my third choice. The latter will remain ARM. I am not necessarily questioning her performance negatively. It's just that the valuation doesn't match my risk-to-reward ratio. I think maybe even ARM's profits .