Arm Holdings Q2: Demand For Armv9 Exceeds Expectations
Portfolio Pulse from
Arm Holdings plc is experiencing strong demand for its Armv9 chips, with revenue growth of 4.7% and ACV growth of 13.1%. Despite this, a 'Sell' rating is reiterated due to overvaluation, with a price target of $105. Major companies like Alphabet and Amazon are adopting Arm-based CPUs.

November 06, 2024 | 11:30 pm
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POSITIVE IMPACT
Amazon is integrating Arm-based CPUs for improved cost-effectiveness and performance in its cloud services, boosting its position in the AI market.
Amazon's use of Arm-based CPUs could improve its cloud service offerings, potentially having a positive impact on its stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Alphabet is adopting Arm-based CPUs for cost-effective, high-performance computing, enhancing its capabilities in cloud and AI markets.
The adoption of Arm-based CPUs by Alphabet could enhance its cloud and AI capabilities, potentially benefiting its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Arm Holdings plc is seeing strong demand for its Armv9 chips, leading to revenue growth. However, the stock is considered overvalued with a reiterated 'Sell' rating and a price target of $105.
Despite strong demand and revenue growth, the stock is considered overvalued, leading to a 'Sell' rating. This suggests a potential short-term price decline.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100