Arm Holdings plc

Last price: $76.35 Updated: 2 years ago 52w range: $46.50 to $79.94 52w change: 64.00% to -4.00% Forward PE: 56.56 Trailing EPS: 0.18 50d average: $65.62 (16%) 200d average: $60.04 (27%)
Open: $77.00 Previous close: $77.11 Change: -$0.76 (-0.99%) Day high: $77.59 Day low: $75.46 Volume: 4.03 million Avg. vol 3m: 6.39 million
NasdaqGS NASDAQ:ARM Cap: 78.28 billion Shares outstanding: 1.0 billion Price hint: 2 Price to book: 16.4
Yahoo Quote

Ask about this stock

Ask a question.

Not personal financial advice.
Research

ARM

Arm Holdings plc, a British multinational semiconductor and software design company, is considered a market leader in its industry. Arm's main business involves designing chips and licensing intellectual property to other companies. These designs are found in a vast range of devices, from smartphones and tablets to IoT devices and servers.

The company was acquired by SoftBank Group in 2016, and its shares were delisted from the London Stock Exchange. So, Arm is currently a wholly-owned subsidiary of SoftBank, meaning you cannot directly invest in Arm through the share market.

However, indirectly, you can invest in Arm by buying shares in SoftBank. Although it adds another layer of risk as you expose your investment to SoftBank's entire portfolio, not solely Arm. It’s also worth noting that NVIDIA, a leading tech company, have agreed to buy Arm from SoftBank for $40 billion. However, this deal is under regulatory scrutiny.

In terms of performance, Arm Holdings has a history of strong growth as their chip designs are in high demand, especially with the ongoing tech and AI boom. They own vast amounts of essential IP in a future-focused industry, which puts them in a solid strategic position.

However, their revenues and profitability are dependent on the licensing fees that they can negotiate with semiconductor manufacturers. Innovations by competitors or stricter regulations may impact their ability to command high prices.

Remember, as an investor, you should always do your due diligence and consider your financial objectives, risk tolerance and investment timeline before making investment decisions.

18 Jan 2024

Notes
Note URL