From Morningstar: 2024-05-15 06:04:00

Arm’s shares have dropped by 20%, but still trade at a 105% premium to their fair value of $57. Management expects 20% revenue growth in 2026 and 2027, driven by cloud and automotive sectors. Financially healthy with $1.6B cash and no debt, Arm has a wide moat rating based on intangible assets and switching costs. Additionally, Arm faces high uncertainty risks from China and the slow adoption of RISC-V architecture. Bulls believe Arm will gain market share in data centers and benefit from IoT trends, while bears warn of revenue concentration risks and potential IP theft in China.



Read more at Morningstar: After Earnings, Is Arm Stock a Buy, a Sell, or…