1 Chip Stock Making Bold Plans

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 7 May 2026

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

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

Transcript

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0:00.0	We've got earnings galore on Motley Fool Hidden Gems Investing.
0:06.0	Welcome to Motley Fool Hidden Gems Investing. I'm your host Tyler Crowe and today I'm joined by longtime contributors John Quas and Matt Frankel.
0:17.0	We're going to do a whole bunch of earnings reactions today because it's been a busy week related to earnings.
0:21.8	And, of course, we're going to hit our mailbag at the end of the show.
0:25.1	First, as we're going to start, we're going to talk about basically semiconductor earnings because it has been one of the big talking points of the week.
0:32.8	Arm holdings and advanced micro devices, AMD, both reported within the past couple of days.
0:38.9	And after both earnings, we saw shares explode as they blasted past earnings expectations,
0:45.1	15, 20% moves in the day.
0:47.0	We're going to start with arm holdings today because shares are quickly retreating
0:51.3	after the company mentioned on its call after hours that mobile growth
0:56.1	was, well, not really growth, and that rising costs were going to impact commodity mobile
1:01.6	device sales. John, Matt, you two played rock, paper, scissors to cover the two. John, you
1:06.5	happened to pick arm holdings as a result. What did you see in the earnings release and the conference
1:11.4	call? And was today's reaction to this, hey, maybe mobile growth isn't great? Was that like an
1:17.1	appropriate response, do you think, to what you saw? Well, Tyler, I think the market reaction is
1:22.0	appropriate, but not for the reason that you mentioned here. And so I just want to frame this.
1:26.8	It is important that you
1:28.1	mention the mobile aspect of the business, because if we zoom way out, I don't want to take
1:33.7	for granted that all of our listeners know what Arm Holdings is. This is a company that really rose
1:38.8	in prominence due to mobile devices. Its chips are more energy efficient than other chips on the market,
1:45.5	and that's a really big deal when you're looking at battery life and a mobile device.
1:49.7	So it was able to rise. It does not make its own chips. Historically, it licenses these products
	...

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