Of course, it has to do with AI. Shares of Arm Holdings plc (Nasdaq: ARM) are surging this morning after the semiconductor design firm announced it will begin making its own chips for AI workloads.

Arm's position in the semiconductor supply chain is unique and yields unmatched switching costs in the fabless sector. Multiple strong growth drivers should allow Arm to grow for years to come.

Arm is facing serious challenges like a slowdown of its growth rate, an emerging threat from RISC-V, and significant exposure to Chinese opaque business practices. The company's business model is ...