Breakout Watch: Why Nvidia, Apple, Meta And Others Use This AI Brain
Oct 24, 2025 16:01:00 -0400 by MATTHEW GALGANIMegacaps like Nvidia (NVDA), Apple (AAPL), Meta Platforms (META), Alphabet (GOOGL) and others have all ridden the artificial intelligence boom to record highs this year. One thing they all have in common is a relationship with Arm Holdings (ARM), whose technology ecosystem helps power agentic AI, AI data centers, and more.
As the Nasdaq composite shows resilience to post a record high Friday, Arm stock has bounced back above a 168.31 buy point with earnings on tap for Nov. 15.
Ubiquitous AI Footprint
Headquartered in the United Kingdom, Arm designs the foundational architecture that enables low-power, high-performance processors, then licenses its designs to companies like Apple, Qualcomm (QCOM) and Amazon.com (AMZN).
Its technology addresses four core markets: Automotive, Computing Infrastructure, Consumer Technologies, and the Internet of Things, or IoT. Through that broad spectrum, Arm has an integral, AI-infused footprint in data centers, mobile computing, telecommunications, high-performance computing and beyond.
How does Nvidia use Arm? It utilizes Arm CPU cores in products ranging from the Nvidia Grace CPU for data centers to BlueField DPUs, or data processing units, for networking to Arm’s Jetson system-on-chip, or SoCs, for edge computing.
Apple uses Arm’s technology licenses to design custom chips for the iPhone, iPad, and Mac.
Arm Flexes Potential Earnings Turnaround
On July 30, Arm reported results for the first quarter of fiscal 2026. It posted 12% sales growth to just over $1.05 billion. Earnings growth slowed 13% to 35 cents per share.
When the company next reports on Nov. 15, Wall Street expects earnings to jump 10% to 33 cents a share on a 26% year-over-year revenue spike to $1.06 billion.
For the full fiscal year, forecasts call for 3% earnings growth to $1.68 per share before jumping 33% to $2.24 per share in fiscal 2027.
Arm Stock Rebounds Into To Buy Zone
Up over 2% Friday, Arm has retaken the 168.31 buy point in a first-stage consolidation after retreating below it earlier this week. It remains within the optimal buy range, which extends up to 5% above the initial entry, or 176.73.
To kick off October, Arm’s 21-day exponential moving average shot back above its longer-term 50-day line. Such action points to rebounding technical strength.
The trajectory of the relative strength line points to rising market leadership. While still shy of a 52-week high, the RS line has risen sharply higher this month.
Signs of demand include a B Accumulation/Distribution Rating and a 1.2 up/down volume ratio.
Meanwhile, Nvidia has also jumped back into buy range as it rakes its 21-day exponential moving average. Apple stands poised to notch yet another record high.
Taking a look at other AI stocks to watch, Meta looks to retake its 50-day line as it continues to work on a double-bottom pattern. Meanwhile, Google stock closed at an all-time high on Friday.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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