$256.73
69.6% vs S&P 12m
Business overview
Dominant CPU IP licensor whose v9 architecture and CSS subsystems are increasingly used inside hyperscaler AI chips and edge inference silicon.
Every custom hyperscaler AI chip likely contains Arm cores or interconnect IP. As model serving moves to custom silicon, Arm collects royalties throughout the stack.
Composite score
Higher = stronger overall research case
Fundamental72
Technical81
Valuation20
AI relevance80
Risk-adjusted (higher = safer)46
Segment-relative fundamental percentile: 100
Synthetic 1Y price action
Deterministic price series; 50d (yellow) and 200d (orange) MAs shown
3M RS: 94.0%6M RS: 71.7%12M RS: 69.6%Vol30d: 99%DD52w: 0.0%
Financial summary
Curated, illustrative
Revenue
$4.92B
Growth (YoY)
20.1%
Gross margin
97.5%
Operating margin
29.6%
FCF
$772.37M
Capex
$751.63M
Net cash / (debt)
$3.17B
ROIC
5.7%
Customer conc.
Medium
Valuation
Market cap
$273.16B
Enterprise value
$269.99B
P/E (TTM)
302.0x
Forward P/E
84.0x
EV / Sales
54.9x
EV / EBITDA
234.4x
P / FCF
353.7x
PEG
1.9x
Rule of 40
—
Risks
Severity 1 (low) to 5 (severe)
- 5Valuation extremely rich
- 3SoftBank float overhang
- 3RISC-V long-term displacement
Score components
What drove the composite
Growth70
Profitability83
Cash generation62
Balance sheet93
Moat / AI relevance88
Capital intensity (higher = lighter)46
Customer diversification60
Valuation discipline (dilution)65
Trend (MA50/MA200)95
Momentum (3/6/12m)80
Relative strength100
Realized vol (higher = lower vol)21
Segment peers
Other companies in Semi IP