From Nasdaq: 2024-11-16 03:55:00

Nvidia revealed a stake in Arm Holdings valued at $147 million in Q4 2023. The position is now worth over $280 million, comprising 65% of Nvidia’s stock portfolio. Arm stock surged 150% in the last year, reflecting investor confidence in AI potential. Nvidia’s interest signals further upside.

Arm is favored by analysts with a $160 target price, implying 18% upside. Arm’s market share in key semiconductor markets is growing, benefitting from increased AI demand. However, Arm stock is considered relatively expensive. Investors face a tough decision on whether to invest in Arm Holdings.

Arm is a semiconductor company that licenses CPU architectures to major tech players like Apple and Microsoft. Its market presence in smartphones is now expanding to PCs and data centers. Arm is also gaining market share in cloud computing, increasing its global footprint.

Arm’s financial performance improved in Q2 2025, despite a decline in licensing revenue. The company’s licensing-based business model and focus on AI infrastructure put it in a strong position for future growth. Although Arm’s current valuation may seem high, analysts expect significant earnings growth through fiscal 2026.

Investors considering Arm Holdings should weigh the potential risks and rewards. The Motley Fool’s Stock Advisor team has identified 10 top stocks for investors, excluding Arm Holdings. Past recommendations like Nvidia have yielded significant returns. Stock Advisor offers a blueprint for success with regular updates and stock picks. Consider the long-term growth potential before investing in Arm Holdings.



Read more at Nasdaq: Nvidia Has 65% of Its Portfolio Invested in 1 Brilliant Artificial Intelligence (AI) Stock