
ARM Stock Forecast & Price Target
ARM Analyst Ratings
Bulls say
Arm Holdings is projecting substantial growth, with anticipated revenue increasing by 24% annually to reach approximately $3.99 billion by 2025, alongside an impressive year-over-year EPS growth of around 345% to $1.60. The company's Q4 outlook highlights a remarkable 32% annual increase in revenue, driven by a 9% growth in royalties and a significant 60% rise in its licensing business, with strong demand from larger deals expected to close by the fiscal year-end. Furthermore, the December quarter saw a record 23% year-on-year growth in royalty revenue, fueled by the successful adoption of Arm's latest v9 architecture and the Arm Compute Sub-System platform, indicating strong momentum in the smartphone sector compared to the broader wireless market.
Bears say
ARM Holdings reported a slight decline in revenue performance obligations (RPO), with current figures at $2.3 billion compared to $2.4 billion the previous quarter, indicating potential challenges ahead. The company anticipates a decrease in royalty revenues, primarily due to seasonality in the smartphone market and a potential downturn in the Internet of Things (IoT) segment, despite some offset from record licensing revenue. Additionally, stagnant penetration of the Armv9 architecture, remaining unchanged at 25% for three consecutive quarters, raises concerns about growth potential and profitability, reflecting broader issues within a saturated mobile device market wherein product differentiation has diminished and replacement cycles have lengthened.
This aggregate rating is based on analysts' research of ARM Holdings PLC and is not a guaranteed prediction by Public.com or investment advice.
ARM Analyst Forecast & Price Prediction
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