ARM Holdings PLC ADR
ARM: XNAS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $52.00 | Pzqt | Sbhszyy |
While Arm Is Executing Well, We Believe the Market Is Pricing Too High Expectations Into the Shares
Business Strategy and Outlook
Arm Holdings does not sell chips, it develops chip architecture and IP that it licenses to its clients. We believe Arm will remain the dominant architecture in smartphone CPUs, where it has a 99% market share, while maintaining high market share in other mobile chips and battery-powered devices. Arm is also making inroads into the data center, where we expect it will gain market share versus x86, the dominant architecture.