The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 13 | 486.5x | 20.1x | Below average | |
Growth | 62 | -24.4% | 5.6% | Near average | |
Quality | 70 | 13.1% | 7.6% | Above average | |
Safety | 81 | -2.0x | 0.4x | Above average | |
Capital Return | 38 | — | 2.19% | Near average | |
Momentum | 75 | — | — | Above average | |
Sentiment | 97 | — | — | Above average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
The average price target for Arm stock has seen a significant increase of 31.6% over the past thirty days to reach 215.5 dollars, driven by optimism among some analysts regarding future revenue growth. However, the data shows a sharp state of uncertainty and Dispersion in the opinions of major institutions; there is a massive gap between the high target (425 dollars) and the low target (120 dollars), indicating a lack of consensus on the fair valuation of the stock.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Arm Holdings plc (listed on Nasdaq under the ticker ARM) is the global leader in designing and developing microprocessor architectures and their accompanying software technologies. The company generates its revenues through two main models: first, licensing intellectual property (IP) to semiconductor and technology companies, and second, collecting royalties on every chip sold that utilizes its technologies. The company is currently expanding into offering Compute Subsystems (CSS) alongside its promising entry into merchant silicon sales for data centers.
During the third quarter of fiscal year 2026, the company's official financial statements showed revenues of $1.2 billion, with an gross profit of $1.2 billion as well, reflecting exceptional gross profit margins close to 100% at the level of direct IP production. Net income for the same quarter reached $223.0 million, recording earnings per share of $0.21. Looking at the results of the fourth quarter of fiscal year 2026 (announced in the earnings call), the company achieved record revenues of $1.49 billion, representing a 20% year-over-year growth, driven by licensing revenues of $819 million and royalty revenues of $671 million.
Automated analysis for informational purposes only — not investment advice.
Arm Holdings stock is currently trading at $408.85, representing a very significant rise and a wide gap above the analyst consensus average price target of $215.5, although it remains below the upper-end price target of $425. The general analyst consensus points to a "Buy" recommendation, reflecting long-term optimism despite the currently high market valuation which is close to the 52-week high range of $421.6899.
The Arm AGI CPU is a custom processor launched at the Arm Everywhere event in March 2026, specifically designed to handle Agentic AI workloads that require complex task orchestration and memory management. The company expects this product alone to generate $15 billion in revenue by fiscal year 2031. This processor has seen exceptional customer demand exceeding $2 billion for the years 2027 and 2028, and the company plans to start recognizing its first actual chip merchant sales revenues from it in the fourth quarter of the current fiscal year.
Arm Holdings is facing legal and regulatory pressures represented by the U.S. Federal Trade Commission (FTC) opening a formal antitrust investigation against the company on May 15, 2026. Additionally, on May 21, 2026, the company faced investigations and pressures related to suspicions of legal fraud. These investigations may impose restrictions on the company's licensing practices or lead to financial penalties that affect the overall sentiment of the stock.
Arm has a very strong relationship with Nvidia, as the latter relies on Arm processors as head nodes in its accelerated AI systems, such as the new Vera processor dedicated to Agentic AI. On June 1, 2026, Arm stock jumped 18% following Nvidia's launch of the RTX Spark chip dedicated to AI-powered PCs, which relies entirely on IP and technologies developed by Arm.
For the first quarter, Arm expects to achieve revenues of $1.26 billion (plus or minus $50 million), representing a 20% year-over-year growth. The company also expects royalty and licensing revenues to grow by approximately 20% as well. Non-GAAP operating expenses (Non-GAAP OpEx) are expected to be around $760 million, with a target EPS of $0.40 (plus or minus $0.04).