Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. The company is involved in the licensing, marketing, research, and development of microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. It also offers arm central processing units, accelerators, system IP products, and compute platform products, as well as development tools and software. The company’s products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. It operates in the United States, the People’s Republic of China, Taiwan, the Republic of Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc is a subsidiary of SoftBank Group Corp.
Challenges Ahead | Delve into ARM's hurdles, including rising operating expenses and market skepticism, as it navigates the competitive semiconductor landscape |
Market Valuation | Analysts offer diverse price targets ranging from $115 to $171, reflecting varied perspectives on ARM's growth potential and market positioning |
Financial Fortitude | ARM's robust revenue growth and impressive gross profit margins underscore its financial strength, with sales projected to nearly double by FY28 |
AI Chip Revolution | Explore ARM's strategic positioning in the AI boom, leveraging its CPU architecture dominance to capture emerging opportunities in custom chip development |
Metrics to compare | ARM | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipARMPeersSector | |
|---|---|---|---|---|
P/E Ratio | 147.6x | 40.6x | 12.1x | |
PEG Ratio | 4.94 | −1.23 | 0.01 | |
Price / Book | 16.5x | 4.7x | 2.4x | |
Price / LTM Sales | 27.8x | 3.5x | 2.3x | |
Upside (Analyst Target) | 46.4% | 1.5% | 23.1% | |
Fair Value Upside | Unlock | −29.3% | 3.5% | Unlock |