From Nasdaq: 2025-03-22 03:53:00

Arm Holdings (NASDAQ: ARM) is a key player in the semiconductor industry, with designs in over 99% of smartphones. It has the world’s most pervasive CPU architecture, beating out rivals like Intel and AMD. Arm’s unique business model focuses on licensing designs and collecting royalties, with 60-70% of revenue coming from royalties.

Arm’s current royalty revenue doesn’t fully reflect the AI boom yet, but strong AI-related demand is evident. The latest CPU design, V9, commands a higher royalty rate than V8. Despite stable revenue share for V9, overall Arm-based product demand is growing rapidly, with royalty revenue up 23% in the fiscal third quarter.

Consider the long-term growth prospects of Arm Holdings before investing. While not on the list of the 10 best stocks to buy right now, the company’s unique business model and potential for growth make it an intriguing option for investors. Keep an eye on key metrics like revenue growth, operating margin, and royalty revenue by architecture.



Read more at Nasdaq: Every Arm Holdings Investor Should Keep an Eye on This Number