ARM Stock Surges 20% in a Month: Is This Still a Buying Opportunity?

Zacks01-31

Arm Holdings plc ARM stock has gained significantly over the past month. Shares have seen a 20% rally, outperforming the industry’s 13% rally. The stock’s remarkable performance can be attributed to ...

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Shares have seen a 20% rally, outperforming the industry’s 13% rally.\nThe stock’s remarkable performance can be attributed to ...</p>\n\n<a href=\"https://finance.yahoo.com/news/arm-stock-surges-20-month-170000262.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>ARM Stock Surges 20% in a Month: Is This Still a Buying Opportunity?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nARM Stock Surges 20% in a Month: Is This Still a Buying Opportunity?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-31 01:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/arm-stock-surges-20-month-170000262.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Arm Holdings plc ARM stock has gained significantly over the past month. Shares have seen a 20% rally, outperforming the industry’s 13% rally.\nThe stock’s remarkable performance can be attributed to ...</p>\n\n<a href=\"https://finance.yahoo.com/news/arm-stock-surges-20-month-170000262.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2357305700.SGD","symbol_name":"Allianz Global Artificial Intelligence ET H2-SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/arm-stock-surges-20-month-170000262.html","article_id":"2507671367","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2507671367","pubTimestamp":1738256400,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Arm Holdings plc ARM stock has gained significantly over the past month. Shares have seen a 20% rally, outperforming the industry’s 13% rally.The stock’s remarkable performance can be attributed to the ongoing excitement around advanced artificial intelligence  software and the associated hardware. Moreover, investors are closely monitoring both the global and American economic landscapes.Considering the current strength of ARM shares, investors may wonder if now is the right time to invest in the stock. Let’s delve deeper.Since its IPO, ARM’s stock has experienced significant volatility. While the influx of capital has strengthened the company’s financial position, its valuation remains subject to market sentiment. This uncertainty, coupled with global economic conditions and the cyclicality of the semiconductor industry, makes Arm Holdings’ stock a potentially risky bet in the short term. Investors need t","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","QCOM":"高通","LU2247934214.USD":"FIDELITY FUNDS SUSTAINABLE FUTURE CONNECTIVITY \"A\" (USD) ACC","LU2458330243.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A-H1\" (SGDHDG) ACC","SG9999015952.SGD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (SGD) ACC","HK0000306685.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) INC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","LU2237443465.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) INC","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","BK4550":"红杉资本持仓","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU1934455194.USD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (USD) ACC","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","AAPL":"苹果","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU1066051498.USD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM2\" (USD) INC","LU2087625088.SGD":"ALLSPRING  US ALL CAP GROWTH \"A\" (SGDHDG) ACC","LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","LU0861579265.USD":"联博低波幅策略股票基金A","LU0784385840.USD":"Blackrock Global Multi-Asset Income A2 USD","LU0323591593.USD":"SCHRODER ISF QEP GLOBAL QUALITY \"A\" (USD) ACC","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","MACW.SI":"APPLE 3xLongSG261006","LU1206713676.USD":"Aviva Investors - Multi-Strategy Target Return Ah USD","LU2552382132.HKD":"WELLINGTON US BRAND POWER \"A\" (HKD) ACC","LU0882574139.USD":"富达环球消费行业基金A ACC","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","SG9999014906.USD":"大华全球优质成长基金Acc USD","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0345770993.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) INC","LU2054465674.USD":"UBS (LUX) KEY SELEC SICAV DIGITAL TRANSFORMATION T \"P\" (USD) ACC","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","ARM":"ARM Holdings","LU2403377893.USD":"ALLIANZ SELECT INCOME AND GROWTH \"AM\" (USD) INC","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC"},"translate_title":"ARM股价一个月内飙升20%：这仍是买入机会吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARM":1,"AAPL":1,"QCOM":1,"MACW.SI":0.6},"content_text":"Arm Holdings plc ARM stock has gained significantly over the past month. Shares have seen a 20% rally, outperforming the industry’s 13% rally.\nThe stock’s remarkable performance can be attributed to the ongoing excitement around advanced artificial intelligence (AI) software and the associated hardware. Moreover, investors are closely monitoring both the global and American economic landscapes.\nImage Source: Zacks Investment Research\nConsidering the current strength of ARM shares, investors may wonder if now is the right time to invest in the stock. Let’s delve deeper.\nARM's Stronghold in Mobile and AI\nArm Holdings has a dominant presence in the semiconductor industry, particularly in mobile devices. The company’s low-power architecture, especially in smartphones and tablets, has been a staple for decades. With the increasing proliferation of mobile computing, it remains at the forefront of supplying technology to leading manufacturers like Apple AAPL, Samsung and Qualcomm QCOM. This stable demand serves as a core strength.\nAs AI and the Internet of Things (IoT) grow, Arm Holdings is uniquely positioned to benefit from these technological trends. ARM-powered chips are being integrated into smart devices, autonomous systems and data centers, capitalizing on AI’s computational needs. With the surge in AI workloads and IoT devices requiring efficient, scalable and low-power processing solutions, Arm’s architecture plays a vital role. The company’s focus on adapting its designs for AI-centric operations adds significant growth potential.\nARM's Licensing Model and Financial Strength\nA distinctive aspect of Arm Holdings’ business model is its licensing and royalty structure. ARM licenses its chip designs to major technology companies and earns royalties on every chip sold. This model provides a steady stream of revenues without significant capital expenditure. Furthermore, partnerships with key industry players allow the company to maintain relevance, ensuring it remains a preferred choice in sectors like automotive, data centers and smart devices.\nArm Holdings’ IPO brought in a significant influx of capital, strengthening its balance sheet. As of Sept. 30, the company held $2.4 billion in cash and had no debt. With a healthy cash reserve, it is better positioned to fund its research and development initiatives, pursue strategic acquisitions and expand its market presence. This financial flexibility also places the company in a stronger competitive position, enabling it to weather market fluctuations and invest in future growth opportunities.\nARM’s Post-IPO Volatility\nSince its IPO, ARM’s stock has experienced significant volatility. While the influx of capital has strengthened the company’s financial position, its valuation remains subject to market sentiment. This uncertainty, coupled with global economic conditions and the cyclicality of the semiconductor industry, makes Arm Holdings’ stock a potentially risky bet in the short term. Investors need to be cautious about near-term fluctuations as the market adjusts to its public status.\nStrong Earnings and Revenue Growth Ahead for ARM\nThe Zacks Consensus Estimate for ARM’s fiscal 2025 earnings is pegged at $1.56, indicating 22.8% growth from the year-ago level. Earnings for fiscal 2026 are expected to increase 32% from the prior-year actuals.\nImage Source: Zacks Investment Research\nThe company’s sales are expected to rise 21.9% and 25.9% year over year, respectively, in fiscal 2025 and 2026.\nImage Source: Zacks Investment Research\nARM's Valuation Remains Significantly Elevated\nARM stock is currently expensive. It is priced at around 74.67 times forward 12-month earnings per share, significantly higher than the industry’s average of 38.84 times. When looking at the trailing 12-month EV-to-EBITDA ratio, ARM is trading at around 223.89 times, far exceeding the industry’s average of 8.61 times.\nWait for a Better Price\nArm Holdings remains a strong player in the semiconductor industry, driven by its dominant architecture and exposure to AI and IoT markets. The company's robust licensing model and strong financials post-IPO provide a solid foundation for future growth.\nHowever, timing the entry is crucial for maximizing returns. Given ARM's current valuation, there may be room for the stock to fall. Investors should wait for a more attractive entry point before buying ARM stock.\nARM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nQUALCOMM Incorporated (QCOM) : Free Stock Analysis Report\nApple Inc. (AAPL) : Free Stock Analysis Report\nARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2507671367"}