ARM Stock Gains 4% Since Q2 Earnings: Is it a Buy or Hold Now?

Impact · against what's priced in

The latest earnings beat and guidance for ARM are fundamentally priced in, as the stock has already climbed 4% following the announcement. The results confirm the strength of the existing licensing business but provide no evidence that the market should start pricing in the higher-margin AGI CPU scale or the aggressive FY31 revenue targets it currently declines.

ARM+0.00

Already priced in

The price assumes

The current 22.8% revenue growth and 92.5% gross margin on the existing IP-licensing business.

The second-quarter revenue of $1.44 billion and earnings of 52 cents per share confirm the current growth trajectory and licensing strength that the market already pays for.

What ARM's price assumes · Sep 11

• semiconductors▲22%
• guidance
• ai
• earnings
• ARM
• chips
• silicon

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