.August 1, 2024 10:57 AM

Arm Holdings, a leader in designing energy-efficient microprocessors for electronic devices, saw a 15% stock price drop after announcing unchanged fiscal 2025 guidance. Despite a projected 27% revenue growth CAGR, investor skepticism remains due to the high valuation at 60 times next year’s EPS. Citigroup upgraded ARM to Buy, with a price target increase from $150 to $170, showing confidence in the company’s growth potential in AI, cloud computing, and smartphones. The company’s strong position in emerging technologies contrasts with challenges in IoT and networking markets, prompting a mix of caution and optimism among investors and analysts.