Execution Risks | Channel conflict with existing licensees, elevated operating expenses, and DRAM constraints threaten near-term momentum as ARM navigates business model transformation |
Datacenter Momentum | Cloud AI and networking royalties projected to reach 50% of total royalty revenue by FY2028, driven by hyperscaler adoption and v9 architecture gains |
Price Outlook | Analyst price targets range from $120 to $335, averaging approximately $193, reflecting divergent views on the chip manufacturing transition |
Silicon Ambitions | ARM pivots from pure IP licensing to manufacturing its own AGI CPU chips, targeting $15B revenue by 2031 through AI datacenter processors |
Metrics to compare | ARM | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipARMPeersSector | |
|---|---|---|---|---|
P/E Ratio | 289.1x | 12.6x | 12.6x | |
PEG Ratio | 5.97 | 0.08 | 0.01 | |
Price / Book | 35.0x | 14.6x | 2.4x | |
Price / LTM Sales | 58.5x | 9.8x | 2.3x | |
Upside (Analyst Target) | −8.0% | 11.8% | 31.6% | |
Fair Value Upside | Unlock | −37.6% | 3.8% | Unlock |
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software. The company serves semiconductor companies, original equipment manufacturers (OEMs), cloud service providers (CSPs), and organizations developing chips for end markets such as smartphones, consumer electronics, industrial IoT, embedded systems, cloud data centers, networking, automotive, and robotics. It provides its products and services in the United States, China, Japan, Taiwan, Korea, and internationally. The company was founded in 1990 and is based in Cambridge, United Kingdom. Arm Holdings plc operates as a subsidiary of SoftBank Group Corp.