China's shift to RISC-V architecture threatens Arm's growth prospects in the region

From Nasdaq: 2025-06-19 13:25:00

Arm Holdings is facing slower growth in China as the country shifts towards RISC-V architecture. China contributed 19% of Arm’s revenue in fiscal 2025, but growth was only 7.5% year over year. The Chinese government’s push for RISC-V, with major tech firms on board, poses a threat to Arm’s dominance in the region.

NVIDIA and AMD are also monitoring China’s RISC-V transition closely. NVIDIA’s AI hardware and data center segments could be impacted, while AMD’s EPYC server chips compete with China’s new Lingyu RISC-V server chip. Both companies must navigate innovation and geopolitical challenges as China embraces RISC-V.

Arm’s stock has surged 18% year to date, outperforming the industry. However, it trades at a high forward price-to-sales ratio of 31.5 and carries a Value Score of F. Analysts have lowered earnings estimates, and the stock currently has a Zacks Rank #4 (Sell). Investors can access Zacks’ picks for $1 to explore portfolio services and recommendations.



Read more at Nasdaq: Is China’s RISC-V Pivot Undermining Arm’s Growth Prospects?