1 Chip Stock Making Bold Plans
5/7/202629 min
It takes a lot of careful thought and planning to add more semiconductor manufacturing capacity. ARM Holdings has said they’ve seen enough demand that they are getting into the manufacturing business themselves. On today’s show, we break down ARMs decision to add production capacity, how it compared to AMD’s results, Doordash’s peculiar earnings, and we dig into the mailbag. Tyler Crowe, Matt Frankel, and Jon Quast discuss:
- ARM Holdings and Advanced Micro Devices blowout earnings
- ARM’s ambitious new goal to build its own chips
- The bottlenecks to bringing on new chip capacity
- Doordash’s earnings missing guidance
- Mailbag: Why do Starbucks and Dominoes have negative shareholder equity?
- Mailbag: How will the SaaSpocalypse affect CRM and WIX? Companies discussed: AMD, ARM, NVDA, GOOG, META, ASML, LCRX, KLAC, DASH, SBUX, DPZ, CRM, WIX Host: Tyler Crowe Guests: Matt Frankel, Jon Quast Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices
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Transcript preview
First 90 secondsTyler Crowe· Host0:00
[upbeat music] We've got earnings galore on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined by longtime contributors John Kwas and Matt Frankel. We're gonna do a whole bunch of earnings reactions today because it's been a busy week related to earnings, and of course, we're gonna hit our mailbag, uh, at the end of the show. First, as we s- gonna start, we're gonna talk about basically semiconductor earnings because it has been one of the big talking points of the week. Uh, Arm Holdings and Advanced Micro Devices, AMD, both, uh, reported within the past couple of days, and after both earnings, we saw shares explode as they blasted past earnings expectations, 15, 20% moves in the day. We're gonna start with Arm Holdings today because shares are quickly retreating after the company mentioned on its call after, uh, after hours that mobile growth was, well, not really growth, and that rising costs were going to impact commodity mobile device sales. John, Matt, you two played rock paper scissors be- to cover the two. John, you happened to pick Arm Holdings as a result. What did you see in the earnings release, in the conference call, and was today's reaction to this, "Hey, maybe mobile growth isn't great," was that, like, an appropriate response, do you think, to what you saw?
Jon Quast· Guest1:19
Well, Tyler, I, I think the market reaction is appropriate, but not for the reason that you mention here. And so I just wanna frame this. It is important that you mention the mobile aspect