ARM’s Success A Result of Strong Smartphone and Tablet Sales

Chipmaker, ARM (NASDAQ:ARMH) can thank the growing Smartphone and tablet market for its fourth-quarter success. Shipments of their chips nearly double last year. The company saw profits increase 45 percent to $108 million. Royalties from all ARM-based products make up the majority of their profit.

ARM profits when more of its technology is built into a chip, like the Cortex-A processor. The number of ARM-based chips rose 10 percent last quarter. However, the results of those sales boosted the value of the company by 20 percent.

“In Q4 and throughout 2011, ARM has seen strong licensing growth, driven by market-leading semiconductor companies increasing their commitment to ARM technology, and more new customers choosing ARM technology for the first time,” CEO Warren East said. “We have also seen our royalty revenue continue to grow faster than industry revenues as the ARM Partnership gains share in our target markets.”

ARM is predicting sales to drop this quarter to $200 million even after large revenues, with the projection of a drop in semiconductor sales.

Here’s how shares of these chip stocks are reacting to the new today:

ARM Holdings plc (NASDAQ:ARMH): ARMH shares recently traded at $28.81, up $0.45, or 1.59%. They have traded in a 52-week range of $22.10 to $32.18. Volume today was 6,797,115 shares versus a 3-month average volume of 3,213,950 shares. The company’s trailing P/E is 76.22, while trailing earnings are $0.38 per share.

Texas Instruments Inc. (NYSE:TXN): TXN shares recently traded at $32.39, up $0.21, or 0.65%. They have traded in a 52-week range of $24.34 to $36.71. Volume today was 7,741,555 shares versus a 3-month average volume of 10,603,600 shares. The company’s trailing P/E is 17.23, while trailing earnings are $1.88 per share.

Intel Corporation (NASDAQ:INTC): INTC shares recently traded at $26.50, down $0.24, or 0.9%. They have traded in a 52-week range of $19.16 to $27.00. Volume today was 33,436,599 shares versus a 3-month average volume of 52,299,000 shares. The company’s trailing P/E is 11.09, while trailing earnings are $2.39 per share.

Advanced Micro Devices, Inc. (NYSE:AMD): AMD shares recently traded at $6.72, down $0.02, or 0.3%. They have traded in a 52-week range of $4.31 to $9.58. Volume today was 14,248,633 shares versus a 3-month average volume of 15,665,400 shares. The company’s trailing P/E is 10.11, while trailing earnings are $0.67 per share.

To contact the reporter on this story: Laurie Danas at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com