Algorithmic Accuracy

ARM Holdings plc

On July 6, 2016, I Know First predicted ARM’s tickers ARMH and ARM.L to increase, which did indeed increase by 48.99% and 46.80% respectively in just 14 days. I Know First Senior Analyst Motek Moyen Research shared his recommendations regarding ARM, which were very much on target.

The biggest news surrounding ARM this week is that it was acquired by Japanese company Softbank for $32 billion. ARM Holdings Plc focuses on developing computer-chip, software, microprocessors, and physical intellectual property (IP) technologies. The company designs 95% of the chips found in smartphones.

Masayoshi Son, founder and controlling investor of Softbank, says that the acquisition of ARM will allow Softbank, a telecommunications and internet corporation, to develop a more advanced artificial intelligence. The acquisition brings ARM to light and gives it more exposure on an international stage. However, Softbank’s investors think that this acquisition is not worth the hefty price tag and Softbank’s stock has plummeted.

As part of the acquisition deal, Softbank agreed to help ARM by practically doubling ARM’s workforce and investing more into the company over the next 5 years. This added investment by Softbank may also allow ARM to acquire other companies who develop chip technology, allowing for the integration of new technologies into ARM’s preexisting chips.