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Analyst Views on ARM
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- Upgraded Outlook: SoftBank Corp raised its full-year revenue forecast from 6.7 trillion yen to 6.95 trillion yen, reflecting confidence in steady execution toward fiscal 2025 goals, with operating income expected to reach 1.02 trillion yen, indicating strong profitability.
- Significant Revenue Growth: For the first nine months of fiscal 2025, SoftBank Corp reported an 8% year-on-year revenue increase to 5.2 trillion yen, marking a record for the period, while operating income also rose 8% to 884 billion yen, demonstrating enhanced competitiveness in the market.
- Consumer Business Adjustments: Although consumer business revenue saw only a modest 3% increase, segment income rose by 6%, indicating efforts to optimize customer acquisition policies to prioritize long-term profitability, despite a loss of 100,000 smartphone subscribers in Q3.
- Arm Holdings Boost: The strong performance of Arm Holdings provided additional support for SoftBank Group; despite missing Wall Street estimates for licensing revenue, Arm posted record quarterly revenue of $1.242 billion, driven by AI demand, with expectations that its data center business will surpass mobile as its largest segment.
- Superintelligence as a Right: SoftBank Group CEO Masayoshi Son stated in a TIME interview that access to superintelligence should be viewed as a human right, warning that countries lacking this technology in 30 years will be dramatically left behind, which could exacerbate global economic disparities.
- Telecom Profit Outlook Raised: SoftBank Corp raised its full-year profit outlook on Tuesday, increasing revenue expectations from 6.7 trillion yen to 6.95 trillion yen, resulting in a more than 10% surge in SoftBank Group's shares during Tokyo trading, reflecting bullish market sentiment towards its AI initiatives.
- Strong Financial Performance: For the first nine months of fiscal 2025, SoftBank reported an 8% year-over-year revenue increase to 5.2 trillion yen (approximately $33 billion) and an 8% rise in operating income to 884 billion yen (about $5.69 billion), indicating robust growth potential in its AI sector.
- Positive Market Sentiment: Following Japanese Prime Minister Sanae Takaichi's landslide election victory, SoftBank shares jumped over 6% on Monday, and the optimistic outlook for Arm Holdings further bolstered confidence in SoftBank's AI investments.
- Tech Stock Retreat: Technology stocks are broadly down today, contributing to a 0.03% decline in the S&P 500, a 0.34% drop in the Dow Jones, and a 0.17% decrease in the Nasdaq 100, reflecting a cautious investor sentiment following last Friday's sharp gains.
- Bond Yield Pressure: Rising US bond yields, with the 10-year T-note yield up 2 basis points to 4.22%, are exacerbated by Chinese regulators instructing banks to reduce their US debt holdings, reviving concerns over the haven status of US assets and potentially impacting investor confidence.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings and potential market support.
- Economic Data Focus: The market is set to focus on upcoming economic data, including a projected 0.8% increase in the employment cost index on Tuesday and a 2.5% year-over-year rise in the consumer price index on Friday, which will provide guidance on future economic trends.

Technology Sector Performance: The technology sector saw a 4% surge on Friday, as indicated by the State Street Technology Select Sector SPDR ETF.
Weekly Closing Status: Despite the Friday surge, the ETF closed the week down 1.9%, marking its second-largest trading volume in nearly four years.
2026 Performance Context: Technology remains the worst-performing sector among the 11 S&P sectors in 2026, with a decline of 2%.
Market Trends: The fluctuations highlight ongoing volatility and challenges within the technology sector amidst broader market conditions.

Technology Sector Performance: The technology sector saw a 4% surge on Friday, as indicated by the State Street Technology Select Sector SPDR ETF.
Weekly Closing Status: Despite the Friday surge, the ETF closed the week down 1.9%, marking its second-largest trading volume in nearly four years.
2026 Performance Context: Technology remains the worst-performing sector among the 11 S&P sectors in 2026, with a decline of 2%.
Market Trends: The fluctuations highlight ongoing volatility and challenges within the technology sector amidst broader market conditions.
- Musk Ordered to Testify: A federal judge has ruled that Elon Musk must testify regarding his role in dismantling USAID, rejecting his legal team's attempt to avoid questioning, which could impact Musk's reputation and future business endeavors.
- Alphabet Beats Earnings Estimates: Alphabet reported fourth-quarter revenue of $113.83 billion, surpassing the Street consensus estimate of $111.31 billion, with earnings per share of $2.82 exceeding expectations of $2.63, indicating strong performance in advertising and cloud services that may drive stock price increases.
- Amazon Delivery Milestone: Amazon announced it delivered over 13 billion items globally in 2025, with more than 8 billion items reaching U.S. Prime members the same or next day, a speed enhancement that will further strengthen its competitive position in the e-commerce market.
- Tesla's New Model Launch: Tesla unveiled a new All-Wheel Drive variant of the Model Y in the U.S. and Puerto Rico following Elon Musk's announcement of discontinuing the Model S and X, which could attract more consumers and enhance market share.








