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Arm Holdings PLC

Arm Holdings PLC

ARM
$267.19USD↑+1.98%+5.18 today

MARKET CAP

278.8B

P/E (TTM)

148.0x

FWD P/E

110.5x

DAY RANGE

$243 – $273

52W RANGE

$100
$453

AI Summary

Stalk
Sell NowMedium

ARM remains in a Stage 4 decline with medium-term bearish structure confirmed by lower highs and lower lows. Price trades below declining 9EMA, 21EMA, and 50DMA, with rallies rejected at dynamic resistance levels. Oversold conditions are evident but show no clear exhaustion, supporting further downside. Execution should target selling into rallies near the declining EMAs and prior support-turned-resistance zones, while the long-term uptrend above the 200DMA remains intact.

  • ↑Q4 FY2026 revenue reached $1.49B (+20% YoY); FY26 total $4.92B (+23%).
  • ↑Strong operating margin of ~49% and non-GAAP EPS of $0.60 reflect solid profitability.
  • ↓Forward P/E of ~154 suggests the stock is significantly overvalued.
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The case for & against

Bull & Bear analysis

Bearish

Arm Holdings plc (NASDAQ: ARM) is a leading semiconductor design company specializing in energy-efficient computing architecture for a variety of applications, predominantly in the mobile and data center segments. As a key player in the rapidly evolving fields of artificial intelligence (AI) and cloud computing, Arm is transitioning from its traditional focus on intellectual property licensing towards direct chip manufacturing, aiming to capitalize on the escalating demand for computing solutions in the AI data landscape. The company holds a significant market share among hyperscalers and is positioned to benefit immensely from the anticipated growth in AI-driven applications.

Bull says

  • ↑Q4 FY2026 revenue reached $1.49B (+20% YoY); FY26 total $4.92B (+23%).
  • ↑Strong operating margin of ~49% and non-GAAP EPS of $0.60 reflect solid profitability.
  • ↑Customer demand for the new ARM AGI CPU exceeds $2B for FY27-28, supporting supply ramp-up.
  • ↑Strategic partnerships with Meta, AWS and Google secure ~50% share of new hyperscaler server chips.
  • ↑High profitability and growth factors, plus positive analyst revisions, underpin upside potential.
  • ↑ARM targets $15B in AGI CPU revenue by FY2031, leveraging AI-driven expansion.

Bear says

  • ↓Forward P/E of ~154 suggests the stock is significantly overvalued.
  • ↓Customer demand for AGI CPU tops $20B while near-term supply capacity is ~$1B.
  • ↓Macroeconomic headwinds and smartphone sales slowdown may cut royalty revenues.
  • ↓Non-GAAP operating expenses rose 30% YoY to $734M, pressuring margins if growth slows.
  • ↓Elevated share-price volatility and rising short interest reflect bearish investor sentiment.
  • ↓Weak balance-sheet quality and low book-to-price ratio raise financial stability concerns.

Investment themes with ARM

Semiconductors↑ +0.54%

Chips powering modern tech and AI growth

NVDA · TSM · AVGO

Earnings Call · Q4 2026 · Mgmt. Guidance

Updated 05-09-2026bullish

Transcript signals

Bull points

  • Revenue this quarter was 1.49 billion, up 20%, our highest quarterly revenue quarter ever, and above the midpoint of our guidance.
  • Licensing revenue grew 29% year over year to 819 million, driven by strong demand for the Arm platform.
  • Royalty revenue grew 11% to 671 million, with growth across Edge AI, Physical AI, and Cloud AI, where our data center royalty has more than doubled year over year.

Bear points

  • licensing revenue varies quarter to quarter due to timing and size of high-value deals.
  • ACV grew 22% year on year, maintaining strong momentum. This continues to be above our long-term expectations for license revenue growth.
  • non-GAAP operating expenses were $734 million, up 30% year on year due to strong R&D investment.
Read full transcript analysis ›