Despite Arm's Strong Sales and Earnings Performance, Expectations Remain High

Arm Holdings doesn't sell chips; rather, it develops CPU architecture and intellectual property that it licenses. We believe Arm will remain the dominant architecture in smartphone CPUs, where it has 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, sold by Intel and AMD.