1 Chip Stock Making Bold Plans

19 snips

May 7, 2026

Guest

Matt Frankel

Guest

Jon Quast

Matt Frankel, investing analyst known for earnings breakdowns, and Jon Quast, fundamentals-focused analyst, discuss ARM’s move from licensing to building chips and the hurdles of adding fab capacity. They compare ARM and AMD’s results, unpack DoorDash’s puzzling quarter, and answer mailbag questions on corporate balance sheets and SaaS risks.

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INSIGHT

Arm's Big Pivot To Making Chips

Arm plans to become a chip maker to capture roughly 10x the gross profit per chip versus licensing, targeting $25B revenue and $9 adjusted EPS by fiscal 2031.
Jon Quast warns valuation raced ahead (>$250B market cap) making Arm ~10x forward sales and ~23x earnings on a four-year view, so risk from high expectations is real.

INSIGHT

AMD Strength From CPUs And AI Orders

AMD's big beat was driven by 57% data center growth and stronger-than-expected Q2 guidance implying acceleration in server demand.
Matt Frankel highlights AMD's CPU strength and upcoming Helios full-rack AI systems with major orders from OpenAI and Meta.

INSIGHT

Chip Fabs Bottlenecked By Equipment Suppliers

Scaling chipmaking faces equipment bottlenecks: firms like ASML, Lam Research, and KLA limit how fast fabs can be built and equipped.
Tyler Crowe and guests note capacity ramps take years, which can delay or mitigate short-term overcapacity risks.

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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

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