Market Cap: 302.309B; Mega Cap
P/E Ratio: 332.99; Fwd: 128.21
EPS (TTM): $0.85
Div. Yield: N/A

ARMNASDAQ— Arm Holdings plc American Depositary Shares Price & Analysis

Arm Holdings plc American Depositary Shares

TECHNOLOGY — SEMICONDUCTORS

$260.01

-$23.03-8.14%

Market Cap: 302.309B; Mega Cap
P/E Ratio: 332.99; Fwd: 128.21
EPS (TTM): $0.85
Div. Yield: N/A

Technical Summary

RSI (14)38.24Neutral

SMA (50)$322.24Bearish

SMA (200)$187.91Bullish

MACD-16.9535Bearish

Bollinger$244.91 – $358.24Mid

Stochastic31.30Neutral

Theo Outlook

Arm Holdings trades at a premium valuation with a trailing P/E of 310.69 and forward P/E of 121.95 on a $285.38B market cap, supported by 20.1% quarterly revenue growth and $0.86 EPS amid strong semiconductor demand. The high multiple reflects investor optimism for its licensing model in AI and mobile chips despite limited profitability margins of 18.4%.

Key catalysts include continued expansion in AI-accelerated processors, new licensing deals with hyperscalers, and earnings momentum from 47.9% quarterly EPS growth, positioning ARM for further market share gains in edge computing and data centers. Recent fiscal year-end results through March 2026 underscore robust royalty revenue streams.

Risks center on elevated beta of 3.77 exposing the stock to macro headwinds and interest-rate sensitivity, intense competition from x86 and custom silicon, plus potential regulatory scrutiny on semiconductor supply chains; mitigation comes from diversified global licensing and strong institutional ownership at 96.1%. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Theo Outlook

Arm Holdings trades at a premium valuation with a trailing P/E of 310.69 and forward P/E of 121.95 on a $285.38B market cap, supported by 20.1% quarterly revenue growth and $0.86 EPS amid strong semiconductor demand. The high multiple reflects investor optimism for its licensing model in AI and mobile chips despite limited profitability margins of 18.4%.

Key catalysts include continued expansion in AI-accelerated processors, new licensing deals with hyperscalers, and earnings momentum from 47.9% quarterly EPS growth, positioning ARM for further market share gains in edge computing and data centers. Recent fiscal year-end results through March 2026 underscore robust royalty revenue streams.

Risks center on elevated beta of 3.77 exposing the stock to macro headwinds and interest-rate sensitivity, intense competition from x86 and custom silicon, plus potential regulatory scrutiny on semiconductor supply chains; mitigation comes from diversified global licensing and strong institutional ownership at 96.1%. 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: 3.77
52-Wk High: $452.7
52-Wk Low: $100.02
Avg Volume: 4.8035M
PEG Ratio: 2.338

Frequently Asked Questions

What is Arm Holdings' business model?

Arm Holdings designs and licenses CPU architectures and related technologies to semiconductor companies and OEMs rather than manufacturing chips itself. This asset-light model generates revenue primarily through licensing fees and royalties on every chip sold using its IP.

What are Arm's main revenue sources?

Revenue comes from licensing its processor designs and royalties tied to chip shipments, with TTM revenue of $4.92B. The company benefits from high-margin royalty streams in mobile, automotive, and increasingly AI-driven markets.

What competitive advantages does ARM hold?

Trading Data

Open: $282.77
Previous Close: $283.04
Day Range: $258.43 – $288.99
Volume: 4.8519M
Shares Outstanding: 1.0681B
Analyst Target: $302.35

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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: 3.77
52-Wk High: $452.7
52-Wk Low: $100.02
Avg Volume: 4.8035M
PEG Ratio: 2.338

Frequently Asked Questions

What is Arm Holdings' business model?

Arm Holdings designs and licenses CPU architectures and related technologies to semiconductor companies and OEMs rather than manufacturing chips itself. This asset-light model generates revenue primarily through licensing fees and royalties on every chip sold using its IP.

What are Arm's main revenue sources?

Revenue comes from licensing its processor designs and royalties tied to chip shipments, with TTM revenue of $4.92B. The company benefits from high-margin royalty streams in mobile, automotive, and increasingly AI-driven markets.

What competitive advantages does ARM hold?

ARM's energy-efficient architecture dominates mobile and embedded systems with over 200B chips shipped historically, giving it strong network effects. Its neutral licensing approach allows broad adoption across competitors, supported by a 96.1% institutional ownership base.

What are the key risks for ARM investors?

Key risks include high volatility with a beta of 3.77, potential slowdowns in semiconductor demand, and competition from Intel and custom designs by Apple or Google. No dividend is paid, and the stock trades near 52-week highs of $452.70 after a low of $100.02.

What is the growth outlook for ARM stock?

Analysts target $303.97 with strong buy ratings, driven by 20.1% quarterly revenue growth and 47.9% EPS growth. Forward P/E of 121.95 suggests continued expansion in AI and 5G markets, with next earnings likely tied to the March 2026 fiscal quarter.