Arm Holdings PLC – ADR ARM shares are down about 0.6% to $139.42 Thursday afternoon while there is a lack of company-specific news for the session. Despite this slight dip, shares have jumped 14% since Monday’s open.

What’s Going On: ARM stock gained on Monday as anticipation grows around the company's role in Apple Inc’s AAPL upcoming iPhone 16. Reports indicated that Apple will feature Arm’s V9 architecture in the new A18 chip.

The Financial Times reported that the new iPhone will leverage Arm's advanced V9 architecture, which has been previously integrated into Apple's M4 MacBook chips. This architecture, introduced by Arm in 2021, is expected to drive a substantial increase in royalties for the company.

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According to Arm's CEO, Rene Haas, the shift from the V8 to the V9 architecture could potentially double the company's earnings from chip royalties.

This development is particularly significant as Apple continues to pivot towards enhancing its artificial intelligence capabilities. The company's recent announcement of "Apple Intelligence," which includes complimentary access to OpenAI's ChatGPT, underscores its investment towards AI advancements.

What Else: In July, Arm reported quarterly sales of $939 million, beating the consensus estimate of $902.7 million by 4.02%. This growth was primarily driven by record license revenue and a significant increase in royalty income.

The company also announced earnings of 40 cents per share for the first quarter, which exceeded the analyst consensus estimate of 34 cents by 17.65%.

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Is ARM A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages — like Arm Holdings‘s page for example — there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Arm Holdings does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 13.76%, you'll need to buy a share of Aberdeen Total Dynamic by the Sept. 23, 2024. Once done, you can expect to receive a nominal payout of $0.1 on Sept. 30, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Arm Holdings will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, Arm Holdings has a 52-week high of $188.75 and a 52-week low of $46.50.

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