Arm’s trailing 12-month licensing revenue grew 32% to $2.7 billion, after a 50% jump in second-quarter licensing. Royalties grew just 8%. Management now sees up to $2 billion of Arm AGI CPU revenue over fiscal 2027-28 and will make an update on the supply situation next quarter.
We expect Arm will keep gaining data center market share from x86 architecture, as its chips consume less power and data centers need to minimize energy consumption. We also expect gains in automotive shares, driven by the transition to EVs.
By entering the CPU market, Arm is competing with its own customers, treading in dangerous territory and creating a conflict of interest.
Metric | ARM | INTC | CDNS |
|---|---|---|---|
Price/Earnings (Normalized) | 110.73 | 112.63 | 53.47 |
Price/Book Value | 23.52 | 2.83 | 13.30 |
Price/Sales | 39.27 | 5.18 | 14.92 |
Price/Cash Flow | 87.43 | 15.30 | 40.14 |
Metric | ARM | INTC | CDNS |
|---|---|---|---|
Quick Ratio | 6.12 | 1.55 | 1.04 |
Current Ratio | 6.35 | 2.21 | 1.36 |
Interest Coverage | — | −8.99 | 15.04 |
Metric | ARM | INTC | CDNS |
|---|---|---|---|
Return on Assets (Normalized) | 20.15% | 5.80% | 15.24% |
Return on Equity (Normalized) | 26.01% | 11.41% | 27.63% |
Return on Invested Capital (Normalized) | 23.57% | 7.13% | 19.72% |
1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| NVIDIA Corp NVDA | LOCK|j$<F#p% | LOCK|?g? | $4T | |||
| Taiwan Semiconductor Manufacturing Co Ltd ADR TSM | LOCK|fkP&sM | LOCK|@qT | $2T | |||
| Broadcom Inc AVGO | LOCK|?$xTMd$# | LOCK|KTL | $2T | |||
| Advanced Micro Devices Inc AMD | LOCK|n&N@q%n | LOCK|#wD^ | $960B | |||
| Micron Technology Inc MU | LOCK|?Y%#gf< | LOCK|^@Y | $903B | |||
| SK hynix Inc ADR SKHY | LOCK|Q%@nTW | LOCK|Xt | $662B | |||
| Intel Corp INTC | LOCK|!sT!>lk | LOCK|%yW | $325B | |||
| Texas Instruments Inc TXN | LOCK|?#$VBVD | LOCK|!h^ | $286B | |||
| Analog Devices Inc ADI | LOCK|<^Zfvqz | LOCK|w%$ | $198B |
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