Arm Holdings plc American Depositary Shares ARM

What the company does

Arm Holdings plc American Depositary Shares is a mega-cap company in the Technology sector (Semiconductors), with a market value of $224.6B, based in the USA.

It employs about 9,584 people and has been listed since Sep 14, 2023.

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.

Cheap or expensive? relatively expensive

Its price-to-earnings (P/E) is 216.8 versus 36.1 for 4 direct peers — relatively expensive.

Revenue is growing 22% a year — the market is paying ahead for that growth. If it slows, the high multiple becomes the risk.

On analysts' next-year forecasts the multiple drops to 87.0 — they expect higher earnings.

The average analyst price target is 290.70, 38% above the current price (their view, not ours).

The stock sits at 31% of its one-year range (0% = the low, 100% = the high).

The risks

• • The stock is more volatile than average (beta 3.8) — big daily moves both ways.
• • 11% of the float is sold short — part of the market is betting on a decline.
• • The stock is 54% below its one-year high.
• • Quarterly report in 10 days (2026-11-04) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 21 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ More cash than debt.
• ✅ Most analysts rate it buy (29 vs 2).
• ✅ Revenue is growing 22% a year.

What changed this week

Over the past week the stock fell 7.7% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

This week's news

• 3 Automation Stocks With Up To 38% Earnings Growth finance.yahoo.com · 2026-10-22
  What the article says

  Oil prices recently jumped to a five month high after attacks on Saudi and Hormuz shipping routes raised fresh questions about global energy security. When fuel costs spike and supply looks fragile, businesses feel real pressure to do more with less labor and less energy. That is where real world automation comes in.… source ↗

• Chip stocks fall as equipment maker Lam Research cites 'supply chain constraints' finance.yahoo.com · 2026-10-22
  What the article says

  Semiconductor stocks fell in pre-market trading on Thursday as a major equipment supplier cited supply chain constraints on its earnings call. The PHLX Semiconductor Index (SOXX) was poised to open down 4% amid investor concerns that such limitations could potentially hurt chip sales. AI chip heavyweight Nvidia (NVDA)… source ↗

• Chip stocks shrug off a scary morning, but history says the shakeout isn't over finance.yahoo.com · 2026-10-20
  What the article says

  Wall Street's AI darlings were in free fall at the open. By midmorning, they were leading the comeback. The PHLX Semiconductor Index (^SOX) sank to its lowest level since early August early Tuesday. It was supposed to be the moment Monday's relief rally fell apart after an eight-session losing streak. Instead, buyers… source ↗

• Chip stocks recover as AI jitters fade finance.yahoo.com · 2026-10-20
  What the article says

  Chip stocks recovered on Tuesday as AI jitters eased following a recent sell-off and hit to sentiment. The PHLX Semiconductor Index (^SOX), erased early morning losses to climb 1%, extending gains of more than 1.5% on Monday. AI chip giants Nvidia (NVDA) and AMD (AMD) also erased early morning gains to climb into… source ↗

• Chip stocks decline as AI-trade rebound fizzles finance.yahoo.com · 2026-10-20
  What the article says

  Chip stocks fell on Tuesday after rebounding from a recent sell-off as sentiment around the AI trade remained shaky. The PHLX Semiconductor Index (^SOX), which climbed more than 1.5% on Monday, was poised to open lower. AI chip giants Nvidia (NVDA) and AMD (AMD) declined nearly 1% and 2%, respectively. US chip maker… source ↗

• Intel leads chip stocks higher as investors jump back into AI trade finance.yahoo.com · 2026-10-19
  What the article says

  Chip stocks rebounded on Monday as investors bought the dip following a steep AI trade sell-off last week. The PHLX Semiconductor Index (^SOX) rose 2% in a reversal of a recent semiconductor rout. Intel (INTC) stock jumped 5% after JPMorgan upgraded the stock to a Buy, citing 'solid execution'. AI chip giants Nvidia… source ↗

What changed since last week

• New risk flag: earnings report coming up.

• The price fell 11.6% since the last summary.