Market Cap: 377.3416B; Mega Cap
P/E Ratio: 415.64; Fwd: 161.29
EPS (TTM): $0.85
Div. Yield: N/A

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ARMNASDAQ— Arm Holdings plc American Depositary Shares Price & Analysis

Arm Holdings plc American Depositary Shares

TECHNOLOGY — SEMICONDUCTORS

$324.86

-$21.53-6.22%

Market Cap: 377.3416B; Mega Cap
P/E Ratio: 415.64; Fwd: 161.29
EPS (TTM): $0.85
Div. Yield: N/A

Technical Summary

RSI (14)55.97Neutral

SMA (50)$231.26Bullish

SMA (200)$159.19Bullish

MACD41.4589Bearish

Bollinger$167.47 – $443.53Mid

Stochastic58.10Neutral

Theo Outlook

Arm Holdings (ARM) presents a bullish thesis with a $439.87 billion market cap, trailing P/E of 478.87, TTM revenue of $4.92 billion (up 20.1% YoY), and EPS of $0.86, reflecting premium valuation for its dominant position in semiconductor IP amid AI-driven demand. The stock's 52-week range of $100.02-$427.99 and beta of 3.41 underscore high-growth potential tempered by volatility. Forward P/E of 185.19 suggests analysts anticipate earnings acceleration.

Key catalysts include expanding AI and data center licensing deals, with quarterly revenue growth of 20.1% and strong analyst ratings (7 Strong Buy, 21 Buy). Growth drivers encompass Arm's architecture adoption in smartphones, automotive, and cloud computing, plus new product launches in high-performance computing that leverage its 18.4% profit margin and 29.5% operating margin.

Risks include regulatory scrutiny on licensing practices, intense competition from x86 and RISC-V architectures, and macro headwinds from semiconductor cycles; these are mitigated by Arm's 95.4% institutional ownership, diversified customer base, and robust 11.9% ROE. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Theo Outlook

Arm Holdings (ARM) presents a bullish thesis with a $439.87 billion market cap, trailing P/E of 478.87, TTM revenue of $4.92 billion (up 20.1% YoY), and EPS of $0.86, reflecting premium valuation for its dominant position in semiconductor IP amid AI-driven demand. The stock's 52-week range of $100.02-$427.99 and beta of 3.41 underscore high-growth potential tempered by volatility. Forward P/E of 185.19 suggests analysts anticipate earnings acceleration.

Key catalysts include expanding AI and data center licensing deals, with quarterly revenue growth of 20.1% and strong analyst ratings (7 Strong Buy, 21 Buy). Growth drivers encompass Arm's architecture adoption in smartphones, automotive, and cloud computing, plus new product launches in high-performance computing that leverage its 18.4% profit margin and 29.5% operating margin.

Risks include regulatory scrutiny on licensing practices, intense competition from x86 and RISC-V architectures, and macro headwinds from semiconductor cycles; these are mitigated by Arm's 95.4% institutional ownership, diversified customer base, and robust 11.9% ROE. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Company Overview

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.

Fundamental Snapshot

Revenue: 4.92B
EBITDA: 1.0647B
Gross Profit: 4.799B
Operating Margin: 29.5%
Profit Margin: 18.4%
ROE: 11.9%
Book Value: $7.79
Beta: 3.406
52-Wk High: $356.45
52-Wk Low: $100.02
Avg Volume: 20.374M
PEG Ratio: 3.071

Frequently Asked Questions

What is Arm Holdings' business model?

Arm Holdings designs and licenses CPU architectures and related technologies to semiconductor companies and OEMs, generating revenue primarily through licensing fees and royalties rather than manufacturing chips itself. With TTM revenue of $4.92 billion and a profit margin of 18.4%, the model emphasizes high-margin IP licensing across mobile, automotive, and AI markets.

What are Arm's main revenue sources?

Arm derives revenue from licensing its processor designs and royalties on chips using its technology, with TTM revenue at $4.92 billion and quarterly revenue growth of 20.1% YoY. Key segments include mobile, infrastructure, and IoT, supported by a gross profit of $4.80 billion.

What are Arm's key competitive advantages?

Trading Data

Open: $362.255
Previous Close: $346.39
Day Range: $298.38 – $362.575
Volume: 13.3975M
Shares Outstanding: 1.0681B
Analyst Target: $234.03

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Company Overview

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.

Fundamental Snapshot

Revenue: 4.92B
EBITDA: 1.0647B
Gross Profit: 4.799B
Operating Margin: 29.5%
Profit Margin: 18.4%
ROE: 11.9%
Book Value: $7.79
Beta: 3.406
52-Wk High: $356.45
52-Wk Low: $100.02
Avg Volume: 20.374M
PEG Ratio: 3.071

Frequently Asked Questions

What is Arm Holdings' business model?

Arm Holdings designs and licenses CPU architectures and related technologies to semiconductor companies and OEMs, generating revenue primarily through licensing fees and royalties rather than manufacturing chips itself. With TTM revenue of $4.92 billion and a profit margin of 18.4%, the model emphasizes high-margin IP licensing across mobile, automotive, and AI markets.

What are Arm's main revenue sources?

Arm derives revenue from licensing its processor designs and royalties on chips using its technology, with TTM revenue at $4.92 billion and quarterly revenue growth of 20.1% YoY. Key segments include mobile, infrastructure, and IoT, supported by a gross profit of $4.80 billion.

What are Arm's key competitive advantages?

Arm's advantages stem from its energy-efficient architecture widely adopted in smartphones and emerging AI devices, a vast ecosystem of partners, and dominant market position reflected in its $439.87 billion market cap. High analyst target price of $247.41 and strong buy ratings (28 total) highlight its technological edge over competitors.

What are the main risks for Arm stock?

Primary risks include high valuation with trailing P/E of 478.87, potential regulatory challenges in licensing, and competition from alternative architectures, alongside macro semiconductor downturns. Mitigation comes from 95.4% institutional ownership, diversified revenue, and beta of 3.41 indicating growth resilience.

What is the growth outlook for Arm?

Arm's outlook is positive with 20.1% YoY revenue growth, EPS of $0.86, and forward P/E of 185.19 signaling expected earnings expansion in AI and 5G markets. Analyst consensus points to continued momentum, supported by 11.9% ROE and expanding licensing in data centers and automotive.

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