iPhone 16 Boost: This Tech Stock Soars

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Back in elementary school, I remember one sports day where I got thrown into a 100m race at the last minute.

I wasn’t even supposed to be in that race—I was part of the 400m relay team, but when someone didn’t show up, I had to step in.

I ran with everything I had, but I ended up finishing last, way behind the second-last runner.

But here’s the funny thing—despite my poor finish, no one doubted I gave it my all, and I was still seen as a strong competitor.

Sometimes, even if you arrive late to the game, you can still make a big impact.

Which brings me to Apple’s new iPhones.

They were definitely not the first to bring AI features to smartphones.

But now that they’re here, they’re proving to be downright formidable and impressive.

Still, as powerful as Apple’s move into AI is, there’s another player that might just come out on top in this race.

I’m talking about Arm Holdings – the British company behind the tech that’s powering Apple’s new AI features.

Let’s dive in and see why they might be the real winner here.

The iPhone 16’s Secret Weapon

The iPhone 16 is coming loaded with some fancy AI features, thanks to Apple’s shiny new A18 chip.

And guess who had a hand in designing this tech marvel?

Yep, Arm Holdings.

Apple’s new A18 and A18 Pro chips are built on Arm’s latest architecture, Armv9.

If you’re wondering what the heck that means, it’s simple: these new chips can handle AI like a champ.

And guess what?

Arm charges higher royalties for their fancy Armv9 tech.

That’s great news for Arm – because more iPhones with Armv9 chips mean more money rolling in for them.

Arm’s Royalty Game Is Strong

Here’s why this is a big deal: Arm’s CEO, Rene Haas, said that Armv9 brings in double the royalties compared to their old tech.

So, every time Apple sells an iPhone 16, Arm gets a bigger piece of the pie.

In fact, Arm’s smartphone royalty revenue jumped 50% last year – even though the number of phones sold only went up a little.

Arm’s getting paid more for each chip, and that trend is likely to continue with the iPhone 16.

Why Arm Will Keep Winning

Now, even if Apple doesn’t sell a ton of extra iPhones, Arm will still cash in because of those higher royalties.

Plus, it’s not just Apple.

Companies like Qualcomm and MediaTek are also using Armv9 in their smartphones.

With AI becoming a huge part of the smartphone world, Arm’s tech is in demand.

This means their earnings could keep climbing – and fast.

The Bottom Line: Should You Invest in Arm?

Arm’s long-term outlook is looking pretty solid.

They’re riding the wave of AI growth, and their earnings are expected to jump by 32% next year.

So, if you want to cash in on Apple’s iPhone 16 launch and the broader AI smartphone trend, Arm might be the stock to watch.

Summary and Call to Action

In short, while Apple might get all the attention, Arm is quietly positioned to rake in the benefits of the iPhone 16 launch with its Armv9 architecture.

As AI smartphones grow, so will Arm’s earnings.

What do you think?

Do you see Arm’s potential, or are you sticking with Apple?

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