Reported about 1 year ago
Arm Holdings' stock has soared, trading at 103x non-GAAP forward earnings, with its IPO price of $51 now surpassed threefold. However, Arm Holdings' stratospheric valuation of 554x GAAP TTM earnings raises concerns among investors, despite its growth potential in AI, data centers, and IoT segments. Analysts remain bullish, citing long-term growth prospects, but some consider the stock overvalued. Recent positive catalysts like earnings surprises and AI chip development plans have driven the stock's surge, with a current average price target of $130.76 suggesting a 20.6% downside.
Source: YAHOO