ARM Holdings, specialized in the R&D of microprocessors for the manufacturing of semiconductors and systems for digital products, resume its uptrend after a failure to break out its short term resistance.
Fundamentally, despite a high valuation which means a high interest from investors for the security, the company has a strong capacity to generate rising profits as shown by increasing revenues and net income. Furthermore, the operating margin at 46.7% for 2013 prove a good pricing strategy and operating efficiency. Finally, the company has an healthy situation with an estimated net treasury at GBp 596 million for 2013.
Technically, the stock is in a bullish trend on all time scales. A return on the short term support gave a new impetus to the trend, given the importance of volume on the stock recently. The 50-day moving average should help to reach the Gbp 1097 short term resistance.
Therefore, investors could buy the ARM Holdings stock at the current price to aim a return towards GBp 1097. A breakout of this level will open new targets. A stop loss will be set under the short term support at Gbp 980.
Arm Holdings plc is a semiconductor intellectual property (IP) company. The Company develops and licenses IP for various devices worldwide, and it provides development tools that accelerate product development, from sensors to smartphones to servers. Its central processing unit (CPUs) and nomenclature for properties and units (NPUs) include Cortex-A, Cortex-M, Cortex-R, Neoverse, Ethos and SecurCore. It provides processor IP, offering a range of cores to address the performance, power and cost requirements of every device, from Internet of things sensors to supercomputers, and from smartphones and laptops to autonomous vehicles. Its graphics and camera technology drives the visual experience across a range of devices, including mass-market to high-performance smartphones, Android OS-based tablets, and digital televisions. It provides foundation physical IP and processor implementation solutions to address the performance, power and cost requirements for all application markets.
ARM HOLDINGS PLC 
