Arm stock has potential in AI, but needs more investment in R&D for sustained growth.

From Morningstar: 2024-03-28 09:41:00

Arm’s soaring stock price is misleading investors about its true potential, according to Morningstar. While the company has strong AI prospects and recent royalty rate increases, the hype is overblown. Arm needs to invest more in R&D to sustain growth. A $57 fair value estimate reflects realistic revenue growth expectations and challenges.



Read more at Morningstar: Arm Stock Has Soared. But It’s No Nvidia