Back to top

Image: Bigstock

From Smartphones to AI: ARM's Expanding Global Tech Influence

Read MoreHide Full Article

Key Takeaways

  • ARM's chip designs now power AI and IoT beyond mobile devices, expanding its global tech footprint.
  • Apple, Qualcomm and Samsung increasingly depend on ARM for scalable, power-efficient AI integration.
  • ARM shares are up 41% in three months but lag the industry; it trades at a steep forward P/S of 30.92.

Arm Holdings (ARM - Free Report) has long been recognized for its power-efficient chip architecture, a key factor behind its dominance in the mobile computing space. However, its influence now extends well beyond smartphones and tablets. Renowned for powering sleek, energy-efficient designs in devices from industry giants like Apple (AAPL - Free Report) , Qualcomm (QCOM - Free Report) and Samsung, Arm Holdings is emerging as a foundational force in the rapidly evolving realms of artificial intelligence (AI) and the Internet of Things (IoT).

What sets ARM apart is its unmatched ability to deliver high performance with minimal power consumption, an increasingly critical requirement as the world becomes more connected and intelligent. From wearables to cloud data centers, AI workloads are proliferating across device categories, and Arm Holdings’ flexible, energy-efficient architecture is being adopted to meet these next-generation demands.

Apple continues to rely heavily on Arm Holdings’ architecture, using it as the backbone for its M-series chips and accelerating AI integration across its ecosystem. Qualcomm, a long-time partner, leverages Arm Holdings’ designs in its Snapdragon processors to fuel AI-driven innovations in smartphones and automotive platforms. Samsung, too, embeds Arm technology in its mobile and consumer electronics devices while advancing AI and IoT capabilities through its Exynos chipsets.

The reliance on ARM by these tech leaders isn’t just continuing — it’s deepening. As Apple, Qualcomm and Samsung scale up their AI ambitions and broaden their IoT strategies, Arm Holdings remains central to enabling this transformation through its scalable power efficiency. The company’s commitment to optimizing its architecture for machine learning and edge computing further strengthens its alignment with the strategic needs of its top clients.

In this light, Arm Holdings is no longer just a key player in mobile chip design — it is fast becoming an essential infrastructure layer powering the AI and IoT future for Apple, Qualcomm and Samsung. Its growing role cements its position as a critical enabler in the broader technology ecosystem.

ARM’s Price Performance, Valuation & Estimates

The stock has climbed 41% in the past three months, underperforming the industry’s 45% growth.

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, ARM trades at a forward price-to-sales ratio of 30.92, well above the industry’s 8.64. It carries a Value Score of F.

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for ARM’s earnings has remained unchanged over the past 30 days.

Zacks Investment Research
Image Source: Zacks Investment Research

ARM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

Apple Inc. (AAPL) - free report >>

ARM Holdings PLC Sponsored ADR (ARM) - free report >>

Published in