From Nasdaq:

Arm Holdings went public, and some analysts didn’t fully understand their potential for profit. Arm makes money from licensing design blueprints for CPUs and collecting royalties. It controls a “significant proportion of all chips with embedded processors”, provided to companies at a lower cost than developing the technology internally. Arm’s recent financial results showed record revenue of $824 million, a 14% increase from the previous year, while its remaining performance obligation showed potential for future growth. With a forecasted revenue of $850 to $900 million, Arm’s future looks bright. While some may consider the company overvalued, forward looking projections indicate a strong future for the company. Specifically, Arm’s processor designs are being used extensively in AI and are capitalizing on growing demands. Now that The Motley Fool’s trading rules allow, it has expressed its intention of investing in Arm Holdings’ stocks.



Read more: I Was Dead Wrong About Arm Holdings and Its Artificial Intelligence (AI) Prospects. Here’s Why.