Why I think ARM is going to dominate in the AI inference future

AI Summary

Bullish ARM thesis: royalty tollbooth model with growing cloud, AI inference and automotive share.

ARM — LONG The author argues ARM is a tollbooth business licensing chip blueprints and collecting 1-2% royalties with ~98% gross margins, so it wins regardless of which chipmaker wins. Growth drivers cited include cloud share rising from 9% to 20% (2022-2025) with a 50% forecast by end of 2025, 30-60% lower power use than x86, 168% higher LLM inference throughput vs AMD, and automotive share up from 36% to 44%. Stated risks are RISC-V, customer concentration and geopolitics.

ARM wins regardless of who wins. Apple vs Samsung vs NVIDIA? All pay ARM.

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u/ErkOfficial Reddit r/stocks

ARM royalty tollbooth wins across AI chipmakers

The author argues ARM is a tollbooth business licensing chip blueprints and collecting 1-2% royalties with ~98% gross margins, so it wins regardless of which chipmaker wins. Growth drivers cited include cloud share rising from 9% to 20% (2022-2025) with a 50% forecast by end of 2025, 30-60% lower power use than x86, 168% higher LLM inference throughput vs AMD, and automotive share up from 36% to 44%. Stated risks are RISC-V, customer concentration and geopolitics.

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