Jan 09, 2025
Here Is Why I am Bearish on ARM Stock despite Its Strong Business Model
Arm Holdings (ARM) is one of the lesser-known semiconductor companies powering many of the world’s advanced devices. However, it has a business model that is different from other major chip companies. In fact, it enjoys theoretically indefinite revenue visibility through a royalty model that reduces highly cyclical demand dynamics. Despite having a positive view about its business operations, the stock is heavily overvalued, leading me to a Sell rating on the stock. Arm Holdings Has a Unique Mod