Posted 2/15/2024, 12:30:00 PM
Arm Holdings Stock Soars on AI Hype and Strong Earnings, Despite Lofty Valuation
- Shares of semiconductor company Arm Holdings have soared recently due to AI hype and strong earnings
- Arm sees higher growth ahead in smartphones, PCs, autos, factories, and data centers using its efficient chips
- Softbank still owns over 90% of Arm after re-IPO; Arm now has $150B market cap
- Arm cites AI as fuel for more growth, especially in power-hungry data centers needing efficient chips
- Valuation is very high at nearly 85x forward earnings; more Softbank selling after March lockup could hit stock