Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
ARM Holdings Plc: Leveraging Nvidia & AMD Adoption of ARM CPUs—A Deep Dive into AI Progress, PC Market Growth, and Impact on Valuation, Outlook & its Key Catalysts?
ARM Holdings reported Q2 FY25 revenue of $844M (+15% YoY), exceeding expectations by $32.55M, driven by record royalty revenue of $514M (+23% YoY) and robust adoption of Armv9 architectures, which now account for 25% of royalty revenue. Smartphone royalties surged 40%, highlighting ARM’s ability to extract value in premium markets despite minimal unit growth. Adjusted EPS of $0.30 surpassed estimates by $0.04, reflecting solid operational execution and cost discipline. Licensing revenue, while down 15% YoY, outperformed expectations, supported by a 10% QoQ increase in bookings and strong demand for AI, automotive, and IoT workloads. Strategic wins, including MediaTek’s Dimensity 9400 and expanding partnerships with Apple, Google, and Microsoft, position ARM as a critical player in next-gen compute. Core System Solution (CSS) designs are scaling rapidly, commanding royalty rates 2x traditional cores, and expanding the addressable market. While Qualcomm litigation and macroeconomic headwinds present risks, ARM’s robust ecosystem, growing relevance in AI compute, and penetration into automotive ADAS and cloud workloads underpin a durable growth trajectory. Management’s FY25 guidance reflects confidence in continued royalty growth, driven by sustained Armv9 adoption. The key question: Can ARM capitalize on AI acceleration and broader CPU adoption to justify its premium valuation and sustain long-term growth in royalties and market leadership?
