ARM$148.75
$148.57
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AI ARM Summary
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Powered by LiveAIOverall Analysis
BuyArm Holdings presents a compelling investment opportunity driven by strong fundamental performance and significant thematic tailwinds in the AI and semiconductor sectors. While valuation metrics are stretched, robust earnings growth and a healthy balance sheet support a positive outlook. Technical indicators suggest potential short-term consolidation but maintain a bullish long-term trend.
Thematic
Arm's licensing model positions it at the core of the burgeoning AI revolution and the continued demand for efficient processing in everything from data centers to edge devices. Its technology is foundational for the next generation of computing.
Fundamental
Arm Holdings demonstrates robust revenue growth and improving profitability, supported by a strong balance sheet with substantial cash reserves and manageable debt. The company's ability to convert revenue into profit is notable.
Technical
The stock has experienced a significant upward trend. However, current momentum indicators suggest potential overbought conditions, and key moving averages are mixed across shorter timeframes, warranting a cautious approach for short-term traders.
| Factor | Score |
|---|---|
| Artificial Intelligence Adoption | 95 |
| Semiconductor Demand | 90 |
| Energy Efficiency | 90 |
| Licensing Model | 80 |
| Competition & Innovation | 70 |
| Factor | Score |
|---|---|
| Valuation | 30 |
| Valuation | 35 |
| Profitability | 40 |
| Growth | 90 |
| Balance Sheet Health | 95 |
| Cash Flow | 85 |
| Earnings Trend | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 50 |
| Momentum | 55 |
| Momentum | 70 |
| Support & Resistance | 50 |
| Volume Analysis | 60 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Consistent EPS Surprises
Arm Holdings plc has exceeded earnings per share (EPS) estimates in its last 7 reported quarters, with an average surprise of 19.7%, indicating strong operational execution and forecasting accuracy.
Reasonable Forward P/E Ratio
The forward P/E ratio of 297.8 is lower than its trailing P/E of 213.32, suggesting that analysts expect earnings to grow, potentially making the stock more attractive on a forward-looking basis.
Bearish Points (8)
Extremely High P/E Ratio
The trailing P/E ratio of 213.32 is exceptionally high, suggesting that the stock may be overvalued and sensitive to any future earnings disappointments.
Potential Slowdown in Revenue Growth
While recent quarterly revenue (Q1 2025) was $1.241 billion, the year-over-year growth rate from Q1 2024's $0.928 billion revenue is approximately 33.7%, but the net income growth for the same period was 16.9%, indicating margin pressure.
Calendar
July 2025
31
Next Earnings Date
H: $0.41
A: $0.35
L: $0.34
H: 1.20B
A: 1.06B
L: 1.04B
Profile
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.
Seasonals
Price Target
142.28 USD
The 39 analysts offering 1 year price forecasts for ARM have a max estimate of 210.00 and a min estimate of 76.54.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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