Arm Holdings is predicted to surpass Palantir's market value with strong growth potential.

From Nasdaq: 2025-01-06 04:12:00

Palantir Technologies emerged as the top performer in the S&P 500 in 2024, with a 340% surge in share price. However, analyst predictions indicate that semiconductor company Arm Holdings could surpass Palantir’s market value of $181.9 billion in 2025 with a 23% increase in stock price to reach $182 billion.

Arm Holdings, valued at $148 billion, designs CPU architectures and licenses intellectual property to customers. Its power-efficient chips are widely used in smartphones and data centers, with market share increasing. Major public clouds like AWS, Google Cloud, and Microsoft Azure have adopted Arm-based chips, showcasing its growth potential.

Despite its high valuation, Arm Holdings is expected to see significant growth due to its dominance in smartphones and increasing market share in other product categories like data centers. Wall Street anticipates 33% annual earnings growth through fiscal 2027, potentially underestimating the company’s trajectory. Analysts foresee a bull-case scenario where Arm’s stock reaches $300 by the end of 2025, implying substantial upside potential.

Investors are advised to consider the growth prospects and market position of Arm Holdings before investing. While the company is not included in the Motley Fool’s list of top stocks, its potential for substantial returns cannot be overlooked. With a history of outperforming Wall Street estimates, Arm Holdings could see further stock price appreciation, possibly reaching $300 per share.

Overall, Arm Holdings’ position as an industry leader in power-efficient chips for smartphones and data centers, coupled with its growth potential in artificial intelligence, makes it a compelling investment opportunity. Wall Street may be underestimating the company’s growth trajectory, presenting an opportunity for investors to capitalize on its potential upside.



Read more at Nasdaq: Prediction: 1 AI Stock Will Be Worth More Than Palantir Technologies by Year-End in 2025