High-flying Arm Holdings (ARM) on Friday announced that it has been added to the PHLX Semiconductor Sector Index (SOX), effective today.

American depositary receipts (ADRs) of the chip and software design firm have soared about 150% since it began trading on the Nasdaq last September, fueled by demand for artificial intelligence (AI) products.

Chief Executive Officer (CEO) Rene Haas said that in just one year as a public company, "Arm has continuously reinforced its position as the foundational compute platform across every technology touchpoint." Haas added that being added to the SOX index "underscores the rapid growth our company has seen as we continue to diversify our solutions and scale across multiple markets."

Last week, Morgan Stanley made Arm "Our New Top Pick," with the analysts calling it "an important part to the shift in edge AI," which is the use of AI data closer to its source, rather than centrally located in a cloud computing facility or data center." They pointed out how Arm’s architecture was being used in the Apple's (AAPL) A18 processor inside the new iPhone 16.

Also last week, Raymond James analyst Srini Pajjuri initiated coverage on Arm with an "overweight" rating and price target of $160. Pajjuri also mentioned the importance of Arm's connection to the iPhone 16, and added that the company was "well-positioned to benefit from rapid growth of GenAI in the cloud and at the edge."

Arm ADRs slipped 1% to $138.41 in late-afternoon trading Friday but are up about 85% this year.  

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Starbucks (SBUX) reported declining sales in its most recent quarter, ending its fiscal year on a down note.

The coffee chain's net revenue fell 3% to $9.1 billion, while comparable store sales dropped 7% in the final quarter of the year, Starbucks said. Earnings per share came in at 80 cents. Wall Street expected diluted earnings of 92 cents per share on $9.2 billion in revenue, according to consensus estimates compiled by Visible Alpha, along with a 5% drop in same-store sales.

CEO Brian Niccol, who joined from Chipotle (CMG) last month, said Starbucks was working on bringing back consumers.

“My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back," Niccol said. "We have a clear plan and are moving quickly to return Starbucks to growth."

Shares fell about 1% in late trading. Prices dove down to roughly $72 in May when Starbucks downgraded its expectations for 2024, but have recovered since, closing Wednesday at above $97.

Wednesday’s earnings extend a period of sluggish sales. Comparable store sales fell 3% in the third quarter, and dropped 4% the quarter before that.

The coffee giant announced last week that it wouldn't release projections for 2025 as a way to give Niccol time to acclimate to his new job. Analysts expect Starbucks to generate $38.4 billion in revenue and $4.1 billion in profit through September 2025, when its fiscal year ends, according to Visible Alpha. Wall Street foresees same-store sales increasing 1.8% during that period.

Niccol took the helm of Starbucks in September as activist investors circled. Starbucks has since said it would enforce office attendance rules and make its cafes more inviting gathering places.

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