We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arm Holdings' Power Efficiency Sets the Stage for AI and IoT Expansion
Read MoreHide Full Article
Key Takeaways
Arm Holdings' energy-saving chip designs are becoming central to growing AI and IoT deployments.
Apple, Qualcomm and Samsung deepen reliance on ARM as they scale AI integration and edge computing.
ARM trades at a higher forward P/S ratio while earnings estimates have risen over the past month.
Arm Holdings’ (ARM - Free Report) foundational advantage in power-efficient chip architecture continues to anchor its dominance in mobile computing, but its influence extends far beyond smartphones and tablets. Long known for enabling energy-saving designs for Apple (AAPL - Free Report) , Qualcomm (QCOM - Free Report) and Samsung, ARM is becoming increasingly central as these companies accelerate their focus on artificial intelligence (AI) and the Internet of Things (IoT).
ARM’s unique ability to deliver high performance with minimal power makes its architecture ideal for an era where intelligence is embedded everywhere, from wearables to edge devices and cloud infrastructure. AI models are being deployed across a wide array of consumer and enterprise products, and Arm’s flexible, power-thrifty designs are being adopted to support these new workloads. Apple continues to rely on Arm-based architecture for its M-series chips as it deepens AI integration across its devices. Qualcomm is using ARM designs to drive AI-enhanced smartphones and automotive platforms, while Samsung leverages ARM’s technology across mobile, consumer electronics and its expanding Exynos portfolio targeting AI and IoT applications.
The reliance of these major tech players on Arm Holdings is not only consistent but also strengthening. As Apple, Qualcomm and Samsung scale their AI ambitions and broaden their IoT ecosystems, they depend even more on Arm’s ability to deliver power-efficient performance at global scale. ARM’s ongoing push to optimize its architecture for machine learning and edge computing ensures tight alignment with the emerging needs of its top customers.
As a result, Arm Holdings is evolving from a mobile-centric enabler to a critical AI and IoT infrastructure layer for the world’s leading device makers, solidifying its strategic importance across the broader technology landscape.
ARM’s Price Performance, Valuation & Estimates
The stock has gained 7.5% year to date compared to the industry’s 51% rally.
Image Source: Zacks Investment Research
From a valuation standpoint, ARM trades at a forward price-to-sales ratio of 25X, well above the industry’s 8X. It carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ARM’s earnings has been on the rise over the past 30 days.
Image: Bigstock
Arm Holdings' Power Efficiency Sets the Stage for AI and IoT Expansion
Key Takeaways
Arm Holdings’ (ARM - Free Report) foundational advantage in power-efficient chip architecture continues to anchor its dominance in mobile computing, but its influence extends far beyond smartphones and tablets. Long known for enabling energy-saving designs for Apple (AAPL - Free Report) , Qualcomm (QCOM - Free Report) and Samsung, ARM is becoming increasingly central as these companies accelerate their focus on artificial intelligence (AI) and the Internet of Things (IoT).
ARM’s unique ability to deliver high performance with minimal power makes its architecture ideal for an era where intelligence is embedded everywhere, from wearables to edge devices and cloud infrastructure. AI models are being deployed across a wide array of consumer and enterprise products, and Arm’s flexible, power-thrifty designs are being adopted to support these new workloads. Apple continues to rely on Arm-based architecture for its M-series chips as it deepens AI integration across its devices. Qualcomm is using ARM designs to drive AI-enhanced smartphones and automotive platforms, while Samsung leverages ARM’s technology across mobile, consumer electronics and its expanding Exynos portfolio targeting AI and IoT applications.
The reliance of these major tech players on Arm Holdings is not only consistent but also strengthening. As Apple, Qualcomm and Samsung scale their AI ambitions and broaden their IoT ecosystems, they depend even more on Arm’s ability to deliver power-efficient performance at global scale. ARM’s ongoing push to optimize its architecture for machine learning and edge computing ensures tight alignment with the emerging needs of its top customers.
As a result, Arm Holdings is evolving from a mobile-centric enabler to a critical AI and IoT infrastructure layer for the world’s leading device makers, solidifying its strategic importance across the broader technology landscape.
ARM’s Price Performance, Valuation & Estimates
The stock has gained 7.5% year to date compared to the industry’s 51% rally.
From a valuation standpoint, ARM trades at a forward price-to-sales ratio of 25X, well above the industry’s 8X. It carries a Value Score of F.
The Zacks Consensus Estimate for ARM’s earnings has been on the rise over the past 30 days.
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.