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Posts$Arm(ARM.US) Let me tell another story
October 10, 2025 news: Japan's SoftBank Group has applied to international banking institutions for a $50 billion credit facility, using its chip giant ARM as collateral. This financing will be used to accelerate its AI strategic layout, with a focus on supporting this year's additional $30 billion investment plan in OpenAI.
Japan's SoftBank Group is a global technology investment giant. Through ARM equity pledges, it has already accumulated a $13.5 billion margin loan facility. This new $5 billion credit line brings its total financing capacity to $18.5 billion. Concurrently, the launched "Stargate" data center project is planned to invest $500 billion, with plans to collaborate with OpenAI and Oracle to build a US data center matrix.
I don't need to say more about the above. You don't know how long ago the underwriters started positioning. Those who come to trade US stocks must maintain awe for the secondary market!!!
You talk about value and define the present based on Buffett's thinking, but have you even looked at what Buffett invests in? It's all about: how much currency this product/service can be exchanged for or pegged to in other national markets. Domino's, Apple, Occidental Petroleum, none are exceptions.
These are two different things. One is driven by fundamental pricing, the other by capital. After financing and obtaining shares, first pull back the cost, then pull for multiplied returns. EPS gradually materializes, and P/E shifts from high to low. This is the result of accelerated capital leverage efficiency.
Let me answer you and tell you a story.
In late November 2024, if you had access to US dollar fund fundraising news in Hong Kong or channels to family offices at the A9 level, you should have heard the news: Micron started its first-round market financing roadshow for compute-grade memory, with an initial fundraising of xx billion. This continued until the end of March 2025, when the industry saw its first round of price increases. In April, tariff transfers led to another price hike, and only then did other companies follow suit. Another round of price adjustments in September marked the beginning of the upward charge.
Bro, this is capital-driven. Stock price = PE valuation multiple * EPS (earnings per share).
The so-called fundamentals haven't moved (EPS needs to be realized gradually in the future), but institutions, by pushing up the stock price for underwriting, have already raised the PE valuation multiple first. Don't the shares obtained from the first-round financing need to be pulled back to cost in the secondary market? To achieve a certain high return?
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