By James Brumley
Publication Date: 2026-02-15 16:45:00
Most investors are overlooking a critical detail about the way this semiconductor company’s business works.
It’s been a tough past few months for owners of artificial intelligence (AI) stocks. Microsoft, for instance, is down more than 20% from its October peak. These steep sell-offs are part of a bigger philosophical indictment of the amount of money that big technology companies are spending on AI, and how little of a return many of them are seeing yet.
Not every one of these AI names deserves the pullback they’ve recently experienced, though. One name in particular is likely to bounce back faster than Microsoft shares — or any other recently weak tickers — once more investors realize this. That name is Arm Holdings (ARM +2.39%).
Image source: Getty Images.
Not actually a chipmaker
It’s usually lumped in with the likes of Nvidia, Intel, and Advanced Micro Devices. These semiconductor companies are in the same basic business.
Arm isn’t actually a chipmaker — at least, not yet….
