Arm Holdings Monthly Outlook (December 2025) | Price, Target Price & Growth

Arm Holdings

NasdaqGS:ARM

$ 141,31

+ $0,82 (0,58%)

141,31 $

+$0,82 (0,58%)

End-of-day quote: 12/05/2025

Arm Holdings Stock Value

Currently, analysts rate NasdaqGS:ARM as Outperform.

Outperform

Arm Holdings Company Info

EPS Growth 5Y

0,00%

Market Cap

$149,06 B

Long-Term Debt

$0,00 B

Annual earnings

02/04/2026

Dividend

$0,00

Dividend Yield

0,00%

Founded

1990

Industry

Information Technology

Country

United Kingdom

Website

Arm Holdings

ISIN Number

US0420682058

Website

http://www.arm.com

Analyst Price Target

$180,00

27.38%

Last Update: 12/05/2025

Analysts: 32

Highest Price Target $215,00

Average Price Target $180,00

Lowest Price Target $80,00

In the last five quarters, Arm Holdings’s Price Target has risen from $80,76 to $121,37 - a 50,28% increase. Thirty Five analysts predict that Arm Holdings’s share price will increase in the coming year, reaching $180,00. This would represent an increase of 27,38%.

Top growth stocks in the information technology sector (5Y.)

What does Arm Holdings do?

Arm Holdings plc (Arm), a semiconductor company, principally operates licensing, marketing, research and development of microprocessors, systems IP, graphics processing units, and associated systems IP, software, tools, and other related services. Arm architects, develops, and licenses the company's high-performance, and energy-efficient Arm compute platform. The company's central processing unit ('CPU') products address diverse requirements for performance, power, and size. The company's compl...

Arm architects, develops, and licenses the company's high-performance, and energy-efficient Arm compute platform. The company's central processing unit ('CPU') products address diverse requirements for performance, power, and size. The company's complementary products include graphics processing units ('GPUs'), neural processing units ('NPUs'), accelerators, interconnect, and others. Many of the world's leading semiconductor companies and original equipment manufacturers ('OEMs') rely on Arm to develop their products.

For the three months ended March 31, 2025, approximately 7.9 billion Arm-based chips were reported as shipped, resulting in more than 310 billion Arm-based chips cumulatively. Arm powers everything from the tiniest of sensors to the most powerful supercomputers. The Arm compute platform is the most pervasive architecture in the world and supports a global community of more than 20 million developers. The company's platform runs the vast majority of the world's software, including the operating systems and applications for smartphones, tablets, and PCs, data centers, and networking equipment, as well as the embedded operating systems in devices, such as smart cameras, thermostats, drones, and industrial robotics.

The company's platform is highly leveraged to the growth in AI workloads. Arm CPUs run AI workloads in billions of devices from the edge to the cloud, including smartphones, cameras, digital TVs, cars, and cloud data centers. The CPU is vital in all AI systems, whether it is handling the AI workload entirely, or in combination with a co-processor, such as a GPU or a NPU, which specializes in the acceleration of ML algorithms. In the emerging area of large language models, generative AI, and autonomous driving, there will be a heightened emphasis on the power-efficient acceleration of these algorithms. In the latest Arm architecture, CPUs, and GPUs, the company has added new functionality and instructions to accelerate future AI algorithms and workloads.

Product Offerings

The key elements of the company's solution include:

Arm CPUs: The foundation of the company's product offerings is its CPU products. The company's CPU products leverage its common scalable architecture and address a range of performance, power, and cost requirements.

Other Design Offerings: The company has a portfolio of products that are deployed alongside its CPUs, including:

Accelerators: The company offers a family of GPU and NPU products providing efficient computing acceleration and an optimal visual experience across a wide range of devices.

System IP: Complementary design components that enable designers to create high-performance, power-efficient, reliable, and secure chips.

Compute Platform Products: Arm's CPU, GPU, and System IP products integrated into a foundational compute platform optimized for a specific end market. These CSSs are pre-integrated and pre-verified configurations of Arm technology that deliver significantly higher value to customers by reducing development costs and time-to-market.

Development Tools and Software: The company's tools and software support the development and deployment of the company's offerings.

The company continues to expand the scope of its product offerings, investing in more holistic, end-market optimized designs, expanding beyond individual design IP to providing subsystem designs. Given the complexities of developing chips using the most advanced manufacturing processes, the company is making significant investments to better support the increasing number of OEMs looking to develop their own customized chips. The company also actively considers the impact of next-generation technology adopted by market participants, which has resulted in it allocating resources to, and exploring, new markets and/or different products and solutions for existing and prospective customers in various end markets, including, without limitation, new products in the company's IP portfolio, as well as solutions beyond individual IP designs, such as RTL-based CSSs, GDSII-based CSSs, chiplets, and complete end chip solutions.

In addition, the company has cultivated a broad ecosystem of third-party hardware and software partners to support its customers. The company's partners include leading semiconductor technology suppliers, including foundries and EDA vendors. The company also invests in its software ecosystem and works closely with firmware and operating system vendors, game engine vendors, software tool providers, and application software developers.

Primary Markets

Mobile Applications Processor

The mobile applications processor is the primary chip in a smartphone and runs the operating system and applications, in addition to controlling many of the device functions, including gaming, music, video, and any other applications. While high compute performance is required for today's applications, processors also must be highly energy efficient so that the smartphone's battery will last all day without needing to be recharged. The company has maintained market share in the mobile applications processor market of greater than 99% for many years, by virtue of all key mobile operating systems depending on Arm processors.

The company's royalty revenue from the mobile applications processors market constituted approximately 46% of its total royalty revenue for the fiscal year ended March 31, 2025.

Other Mobile Chips

Mobile phones contain many chips beyond the main applications processor, including the modem, Wi-Fi, Bluetooth, and NFC connectivity chips, GPS chips, touchscreen controllers, power management chips, camera chips, audio chips, and more, which the company refers to collectively as the 'other mobile chips market.' The market share of Arm-based chips in the other mobile chips market varies by device and is generally higher in chips that run more software (such as modem and connectivity chips) and is lower in chips that require less software (such as power management chips).

Consumer Electronics

Consumer Electronics includes products found in the home, such as digital TVs, tablets, laptops, XR headsets, and wearables. The opportunity for Arm-based chips in consumer electronics is increasing as new product categories, such as smart speakers, virtual reality headsets, and laptops, need CPUs that can deliver high performance without sacrificing efficiency.

Industrial IoT and Embedded

The industrial IoT and embedded semiconductor market includes chips used by a wide range of goods, including washing machines, thermostats, digital cameras, drones, sensors, surveillance cameras, manufacturing equipment, robotics, electric motor controllers, and city infrastructure and building management equipment.

Many manufacturers and logistics companies are using advanced sensors and smart machines capable of capturing and analyzing data in real time to improve and automate industrial processes and logistics systems. Combining the data captured by sensors with AI and data analytics can result in improvements in manufacturing yield and system throughput. The company's products are broadly applicable for sensors and embedded computers that require small, power-efficient, and smart processors.

Networking Equipment

The networking equipment market includes chips deployed into wireless networking, such as base-station equipment, enterprise Wi-Fi, and wired networking equipment, such as routers and switches.

The networking equipment market is growing as more wired and wireless infrastructure is deployed, as much of the data consumed in the cloud is created at the edge and needs to be transmitted over networks to the data center for processing. The deployment of 5G networks, as infrastructure scales from fewer large cell towers covering a wide area to a large number of small cells providing high-speed coverage, creates further demand for architecture that allows for flexible deployment of software and workloads.

Cloud Compute

The cloud compute market includes the main server chips, data processing units, and smart network interface cards used by cloud service providers ('CSPs') to run their operations. Arm-based chips have been gaining market share as CSPs have started to deploy Arm products in their own in-house designed chips used in their data centers, and as other CSPs start to deploy chips designed by Arm licensees.

Other Infrastructure

Other Infrastructure refers to the technological components and systems that support various aspects of computing, networking, and data processing, and includes chips deployed into HPC systems, enterprise servers, and edge networking equipment.

Automotive

The automotive market includes all chips with processors within vehicles. This includes chips used for in-vehicle infotainment ('IVI'), advanced driver assistance systems ('ADAS'), engine management, and body and chassis control. The company's market share in the automotive market is highest in more technologically advanced functional areas, such as IVI and ADAS.

The automotive market is expected to increase as ADAS, electrification, IVI, and eventually autonomous driving accelerate requirements for higher compute performance in newly manufactured vehicles. At the same time, automakers must operate with strict constraints on power consumption, heat dissipation, and packaging, while prioritizing functional safety. Furthermore, automotive electronics are transitioning from hardware-defined to software-defined architecture and compute, enabling new services and features, such as ADAS, to be continuously improved via over-the-air updates.

Business Model and Customers

The company's open and flexible business model provides access to high-quality CPU and other products from its compute platform for a wide range of potential customer types and end markets. The company licenses its products to semiconductor companies, OEMs, and other organizations to design their chips. The company's customers license its products for a fee, which gives them access to its designs and enables them to create Arm-based chips. Once a chip has been designed and manufactured with the company's products, the company receives a per-unit royalty on substantially all chips shipped. The royalty has typically been based on a percentage of the ASP of the chip or a fixed fee per unit, and it typically increases as more Arm products are included in the chip. The company's business model enables the widest range of customers to access Arm products through an agreement best suited to their particular business needs.

The company's customers can choose from several licensing models, each with its own pricing mechanics and level of access to Arm products. These include compute subsystems ('CSS'), Arm Total Access, Arm Flexible Access, TLAs, and Architecture Licenses. Regardless of the license model a customer uses, the company receives a per-unit royalty fee on substantially every chip shipped. Because each chip may ship for many years, and Arm compute platforms can be reused in new products as new applications emerge, these licensing agreements contribute to a long tail of recurring royalty revenues.

Intellectual Property

As of March 31, 2025, the company owned or co-owned approximately 8,150 issued patents and has approximately 2,500 patent applications pending worldwide.

Approximately 98% of the company's active patent portfolio (granted and pending) is owned solely by the company, or jointly with its subsidiaries, with the remaining 2% comprising patent assets jointly owned with one or more third parties. Through intra-group licensing arrangements, the company has access to its entire patent portfolio for the purposes of licensing technology or otherwise providing services to third parties.

The IPLA with Arm China

The company is party to the intellectual property license agreement ('IPLA') with Arm China.

Under the IPLA, Arm China licenses certain of the company's IP from the company. In turn, Arm China sublicenses such IP to its PRC customers, as the exclusive distributor of its IP licenses to customers in the PRC.

Customers: Arm China is permitted to sublicense to customers in the PRC.

Products: Arm China can sublicense the company's standard IP offerings. Arm China is required to procure the company's consent in order to sublicense non-standard technology or architectural licenses.

The company may remove any sublicensable IP that it declares obsolete or no longer generally makes available to the company's licensees, whereupon Arm China's rights with respect to such IP are limited to licenses it previously granted.

Arm China may only distribute the company's IP in accordance with its model license terms provided by the company. Any deviations from the company's model license terms require the company's consent.

In addition, under the IPLA, the company is contractually obligated to indemnify both Arm China and its PRC customers that sublicense the company's IP in the event either Arm China or such customers incur damages or costs in lawsuits, administrative proceedings, or similar actions based upon a claim that its IP infringes the IP of a third party.

For the fiscal year ended March 31, 2025, revenues attributable to the company's relationship with Arm China were approximately 17% of its total revenue.

Government Regulation

The company is subject to regulation by various governmental agencies, including, but not limited to, such agencies in the U.K., the European Union, the U.S., and the PRC. These laws and regulations affect the company's activities in areas including, but not limited to, labor, telecommunications, IP ownership and infringement, tax, economic sanctions, import and export requirements and controls, anti-corruption, national security and foreign investment, foreign exchange controls and cash repatriation restrictions, privacy and data protection (such as the European Union General Data Protection Regulation ('GDPR'), the U.K. General Data Protection Regulation ('U.K. GDPR'), and the California Consumer Privacy Act as amended by the California Privacy Rights Act (collectively, 'CCPA')), security and cybersecurity, and data localization requirements, anti-competition, environmental, health and safety, financial reporting, and the certification requirements associated with public sector contracts. The company monitors changes in these laws, regulations, treaties, and agreements, and it is in material compliance with applicable laws.

SoftBank Group, through one of its non-U.S. subsidiaries, provides roaming services in Iran through Irancell Telecommunications Services Company. In addition, SoftBank Group, through one of its non-U.S. indirect subsidiaries, provides office supplies to the Embassy of Iran in Japan.

History

Arm Holdings plc was founded in 1990. The company was incorporated under the laws of England and Wales in 2018.

Arm Holdings Questions and Answers

Which sectors generate sales and which are the top 3 markets?

Revenue distribution by industry: Semiconductor industry: approx. 70% Automotive industry: approx. 15% Consumer electronics: approx. 10% Other: approx. 5% TOP 3 markets and their percentage shares: USA: approx. 40% China: approx. 25% Europe: approx. 20% Arm Holdings plc generates the majority of...

At which locations are the company’s products manufactured?

Production Sites: Arm Holdings plc does not produce physical products. Arm Holdings plc is a company specializing in the development and licensing of semiconductor technologies and designs. The company designs processor architectures and licenses them to other companies, which then produce the physi...

What strategy does Arm Holdings pursue for future growth?

Focus on AI and Machine Learning: Arm Holdings has announced its intention to intensify its efforts in the field of artificial intelligence and machine learning. Expansion into the automotive sector: The company plans to expand its presence in the automotive sector, particularly through partnerships...

Which raw materials are imported and from which countries?

Main raw materials: Silicon, rare earths, copper Main supplying countries: China, USA, Australia Arm Holdings plc is a leading company in the field of semiconductor and chip designs. The production of semiconductors requires a variety of raw materials, with silicon being one of the most important. S...

How strong is the company’s competitive advantage?

Market share in chip design: Over 90% (2023) License fee growth: 20% (2023) Arm Holdings plc has a significant competitive advantage, especially in the field of chip design. The company dominates the market with a market share of over 90% in processor architectures for mobile devices. This strong ma...

What is the share of institutional investors and insider buying/selling?

Institutional investor share: approx. 75% (2025, estimated) Insider purchases/sales: No significant transactions reported (2025, estimated) The institutional investor share in Arm Holdings plc remains high, indicating the continued trust of large investment funds and institutional investors in the c...

What percentage market share does Arm Holdings have?

Market share of Arm Holdings plc: Estimated 40% (2025) Main competitors and their market shares: Intel Corporation: 25% Qualcomm Incorporated: 15% NVIDIA Corporation: 10% Advanced Micro Devices, Inc. (AMD): 5% Samsung Electronics Co., Ltd.: 3% Broadcom Inc.: 2% Moat of Arm Holdings: Arm Holdings p...

Is Arm Holdings stock currently a good investment?

Revenue growth: 20% (2024) Research and development expenses: 30% of revenue (2024) Market share in the semiconductor design sector: 40% (2024) Arm Holdings plc recorded a revenue growth of 20% in 2024, driven by increasing demand for their chip designs in various technology sectors. The company is...

Does Arm Holdings pay a dividend – and how reliable is the payout?

Dividend payment: No dividend (2025) Arm Holdings plc has not paid any dividends in the past and continues this practice in 2025. The company is strongly focused on growth and reinvestments in research and development to strengthen its market position in the semiconductor technology sector. The reli...

Arm Holdings Stock Value

Arm Holdings Company Info

Analyst Price Target

Top growth stocks in the information technology sector (5Y.)

What does Arm Holdings do?

Arm Holdings Questions and Answers

Offer & Services

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