Core Viewpoint - Arm Holdings plc is set to report its second-quarter fiscal 2025 results on November 6, with earnings expected to decline by 30.6% year-over-year, while revenues are projected to increase marginally [1] Financial Performance - The Zacks Consensus Estimate for earnings in the upcoming quarter stands at 25 cents, with revenues pegged at $808.9 million [1] - ARM has a history of earnings surprises, having surpassed the Zacks Consensus Estimate in the last four quarters with an average surprise of 22.2% [2] Earnings Prediction Model - The current model does not predict an earnings beat for ARM, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3] Revenue Drivers - ARM is leveraging AI for advanced chip designs and software tools used in various sectors, including smartphones and data centers, with expected revenue growth driven by Royalty and License revenues [4] - The company anticipates around 20% year-over-year growth in Royalty revenues, supported by the adoption of Armv9 technology [5] Market Performance - ARM's stock has increased by 88.2% year-to-date and 28.1% over the past three months, leading to a high valuation with a forward Price/Earnings ratio of 75.65X, significantly above the industry average of 38.13X [5] Growth Potential - Despite modest revenue growth in recent years, the current AI-driven market environment may enhance ARM's sales prospects [7] - The company has strong gross margins, but operating margins remain under pressure due to high R&D costs, which could benefit long-term growth [8] Investment Strategy - Given the substantial stock increase, a potential correction may occur, suggesting that investors might consider waiting for a better entry point [9] - While ARM has a strong fundamental position in the AI hardware market, timing market entry is crucial for maximizing investment returns [10]

The stock's high valuation raises the risk of a post-earnings sell-off this week.Arm Holdings (ARM 0.13%) has been a rising star in the semiconductor industry. Its technology is used in half of all chips and virtually every smartphone, including Apple's iPhone 16, according to reports. Shares have soared 141% since its initial public offering last year.Arm's lucrative business model based on licensing and royalty revenue makes it a solid business. However, while investors might be tempted to buy shares, the ...

CNBC's Jim Cramer on Friday walked investors through next week's market action, highlighting the Federal Reserve's next meeting and earnings from Super Micro Computer. Despite the slew of earnings next week, Cramer said the presidential election will steal Wall Street's attention."Even with all these earnings reports coming next week, at the end of the day, the market's still going to be hostage to the election, and perhaps more important, to the Fed meeting," he said.On Monday, investors will be reviewing ...

Arm and Taiwan Semiconductor are essential to the artificial intelligence boom, but Wall Street only sees upside in one stock.Chipmakers Arm Holdings (ARM -8.48%) and Taiwan Semiconductor Manufacturing Company (TSM -2.03%) play critical roles in the artificial intelligence economy by supplying many of the largest technology companies. But Wall Street analysts expect the stocks to move in opposite directions over the next 12 months.Forecasts from 42 analysts give Arm a median price target of $144 per share. ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Stocks Climb the Wall of Worry Despite concerns about the presidential election, inflation, interest rates, housing, geopolitical escalations, valuations, the yield curve, and an overbought market, U.S. stocks have climbed the "proverbial wall of worry" to trend higher in 2024. Not only are stocks higher despite the bear's concerns, but they are off to their best start ever in a presidential election year, with the S&P 500 Index up a healthy 22% and the tech-heavy Nasdaq higher by 23%. That said, should inv ...

Is patience a virtue with this stock? The artificial intelligence (AI) race is in full swing, and advanced semiconductors are critical to handle the vast data needs. You're probably aware of chipmakers like Taiwan Semiconductor Manufacturing, Advanced Micro Devices, and Intel, but what about chip companies that don't actually manufacture chips? Arm Holdings (ARM 1.92%) is such a company, and the stock is on fire, having risen 139% since its IPO and more than 215% over the past year. There is a ton to like a ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

The legal disputes between Arm and Qualcomm are heating up -- and billions of dollars in revenue for both companies are at stake.Shares of Arm (ARM -7.15%) lost ground in Wednesday morning trading. The semiconductor company's stock price was down by 6.1% as of 12:55 p.m. ET.Bloomberg published a report Tuesday night stating that Arm had informed Qualcomm that it plans to cancel its chip design architecture licensing arrangement. If that does happen, it could result in significant sales and earnings declines ...

In this articleA smartphone with a Qualcomm logo is placed on a computer motherboard in this illustration taken on March 6, 2023.Qualcomm shares fell nearly 5% in premarket trade after Bloomberg reported that British chip designer Arm is looking to scrap a key license for the U.S. firm.Arm has given Qualcomm a 60-day notice of the cancellation of their so-called architectural license agreement, Bloomberg reported, citing a document.The license in question allows Qualcomm to design chips based on Arm archite ...