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Key Takeaways
- Apple is widely expected to launch the iPhone 16 on Monday.
- The latest version of the phone will reportedly include a chip based on Arm Holdings technology to power generative AI capabilities. That news lifted Arm’s shares Monday.
- Chips made using Armv9 technology made up 25% of the company’s royalty revenue last quarter.
Apple (AAPL) is expected to unveil the iPhone 16 at an event on Monday — and that’s lifting shares of Arm Holdings (ARM).
The chip designer’s stock gained 5% as investors prepared for Apple’s “It’s Glowtime” event, aided by a Financial Times report that the iPhone 16 is expected to run on a chip based on the Armv9 CPU.
Arm’s chip designs are expected to play an important role in the IPhone’s 16 use of generative AI, the report said.
Shares up Arm have gained more than 60% in 2024 thanks in part to the growth of Armv9 technology. Chips based on Armv9 technology made up roughly 25% of the firm’s royalty revenue in the second quarter, up from 20% a quarter earlier.
Here’s what to expect from today’s Apple event. Apple’s shares were recently edging lower.