With conventional or online stock trading, potential areas of success and opportunity need to be identified, such as the chip designing industry that seems to have massive potential in the coming years thanks to the concept of Internet of Things which could pervade every aspect of day-to-day living.

Profit and Earnings Rise Puts ARM in the Limelight

ARM Holdings (Nasdaq: ARMH) has reported a rise in profit and revenue for the Q2. This is the British chip designer’s first earnings report after SoftBank Group Corp, the Japanese telecommunications company, had agreed to acquire it for $32 billion.

In the three months ended June 30, revenue rose by 9% to $387.6 million from the similar period in 2015. There was a 90 million pound rise in profit, which was a 17% rise from the previous year though the profit and revenue did fall short of the Thomson One Analytics consensus survey. Share prices for ARM remained at 16.77 pounds which nearly matched the price for which SoftBank acquired the firm.

The Potential Indispensability of ARM

ARM is quite an important global tech company, though it hasn’t quite been in the limelight. That inconspicuousness can be accounted for the fact that it is a chip designer rather than a manufacturer of any device such as a smartphone or tablet. Most of the microprocessors powering the smartphones we use have been designed by ARM. The company’s processor schematics have been licensed to tech giants such as Samsung, Apple and Qualcomm.

Softbank decided to buy ARM to capitalize on the latter’s role in the Internet of Things. The possibility of everyday products and transactions being linked to the web could be around the corner, and when that happens the world will be running on chips alone. These would be powering the devices and processing information to be sent through the Internet.

The Potential of Internet of Things

As of now, there isn’t a market big enough for devices or technology fitting into the Internet of Things concept, but that could change in the coming years, and the revenue for related intellectual property is expected to rise astronomically, according to analysts.

And that’s when this deal with ARM would prove to be a masterstroke for SoftBank. And that’s when stock trading in the chip designing industry may appear attractive.

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