ARM (NASDAQ:ARM) the company who's tech you find in almost every smartphone, tablet, and more recently in all modern mainstream Apple devices (M series chips) are a perfectly suited to harness the new "AI hotness" such as DeepSeek.

While ARM did sell much of its stake in it's subsidiary (ARM China), ARM is now looking to sell directly to China and is well positioned to design chips which meet or sidestep export controls.

To grasp the idea of how the game has changed, you can find an array of post of enthusiast running DeepSeek on low powered Raspberry Pi's which are small low cost USB powered micro computers using ARM processors. No longer is it necessary to have a high powered chip to do moderate computation.

Others in the industry have noticed this which is why companies such as Nvidia (NASDAQ: NVDA) are planning to build ARM based PC chips. Others such as Qualcomm already offer their ARM based Snapdragon laptops from Samsung, Lenovo, and others offering both ARM chips running ARM based Windows and ChromeOS platforms. You will also find ARM powered devices such as the Meta (NASDAQ: META) Quest 3 VR headset.

FANGs including Alphabet's Google (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN) already are well known for running custom server hardware in their datacenters and I expect a shift will continue where more, power efficient ARM based hardware is in big techs ecosystems.

ARM debuted on the NASDAQ on September 14 2023 at an IPO price of ~$51.00 per share. It did not take long for the $ARM stock to gain 142% to $147.60 per share as of closing on Jan 29th 2025.

A paradigm shift on how this will reshape business and enterprise software is not just coming, it's already here. ARM's platform looks to be the future of chips and processing capability.

How well do narratives help inform your perspective?

Disclaimer

The user TheFoxOfWallStreet has a position in NasdaqGS:ARM. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.