Great ariticle, would you like to share it?

Is ARM a buy ?

@Anva
$ARM, a undisputed leader in the CPU industry, as they took their monumental step into the public sphere through an exciting #IPO. Let's delve into $ARM 🚀 Potentials and ⚖️ Challenges - in this comprehensive thread. $ARM is the industry leader of CPUs. They architect, develop, and license high performance, low-cost, and energy-efficient #CPU products and related technology, on which many of the world’s leading #semiconductor companies and #OEMs rely on them to develop their products. 🎯$𝑨𝑹𝑴 𝐅𝐨𝐮𝐧𝐝𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐂𝐡𝐚𝐧𝐠𝐞𝐬 👉 Founded in 1990 as a joint venture between Acorn Computers, $APPL, and VLSI Technology. 👉Listed on the London Stock Exchange and Nasdaq from 1998 to 2016. 👉Acquired by #SoftBank for $32 billion in 2016. 👉 In September 2020, $NVDA announced a $40 billion acquisition of Arm. 👉Regulatory challenges, including a lawsuit by the #FTC , led to the Nvidia deal's cancellation. 👉Went public through #IPO with $51 per share and market cap $54.5B USD on 14th Sep 2023. 👉 $ARM #China operates independently from $ARM. $ARM has only 4.8% indirect ownership interest(non-voting) in Arm China. $ARM China is the largest customer of $ARM.🚩 🎯 $𝑨𝑹𝑴 𝑮𝒍𝒐𝒃𝒂𝒍 𝑹𝒆𝒂𝒄𝒉 👉70% of the world's population uses $ARM based products. 🚀 👉99% of #Smartphones run on $ARM based processors.🚀 👉All key #mobile operating systems depend upon $ARM processors.🚀 👉50% of all chips with #processors are $ARM based.🚀 👉Over 250 billion $ARM based chips shipped to date. 👉Chips containing $ARM technology representing an approximate 48.9% market share in the calendar year ended December 31, 2022 🚀 👉30 billion $ARM based chips shipped in the fiscal year ended March 31, 2023 🚀 🎯$𝑨𝑹𝑴 𝑪𝒍𝒊𝒆𝒏𝒕 𝑩𝒂𝒔𝒆 👉Clients include $AAPL, #Samsung , $AMZN, $NVDA and #GOOG etc.🚀 👉Diverse client base and 10% market share in cloud computing as of December 31, 2022.🚀 👉More than 260 companies reported that they had shipped Arm-based chips in the fiscal year ended March 31, 2023, including the largest technology companies globally (such as $AMZN and $GOOG), major #semiconductor chip vendors (such as $AMD, $INTL, $NVDA, $QCOM & #Samsung)🚀🚀 🎯$𝑨𝑹𝑴 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝑴𝒐𝒅𝒆𝒍 👉 $ARM licenses processor designs to semiconductor companies and OEMs.🚀 👉 Licensees pay upfront fees and royalties based on chip sales.🚀 👉 Designs suitable for various applications and can generate royalties for over 25 years.🚀 🎯$𝑨𝑹𝑴 𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝑷𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆 👉Solid gross profit margin of 96% and Operating income margin of 25% in the fiscal yr 2023.🚀 👉On June 30, 2023, $ARM has cash and cash equivalents of approximately $1.2B billion and short-term investments of $801 million.🚀 👉For the fiscal year 2023, total revenue was relatively flat at $2.6B , as compared to $2.7B in the fiscal year 2022. $ARM's revenue was impacted by weak mobile demand as per them.🚩 👉For last Q, revenue and income is down as compared to the same period of last year.🚩 👉Top five customers (including $ARM China) collectively accounted for approximately 57% revenue.🚩 👉Largest customer $ARM #China , accounted for approximately 24% revenue. 🚩 🎯$𝑨𝑹𝑴 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒊𝒄 𝑮𝒐𝒂𝒍𝒔 𝒂𝒏𝒅 𝑶𝒑𝒑𝒐𝒓𝒕𝒖𝒏𝒊𝒕𝒊𝒆𝒔 👉TAM is expected to grow at a 6.8% #CAGR to approximately $246.6B by 2025.🚀 👉Expanding in areas like #smartphones, consumer #electronics, and #embedded computing. 👉Increasing royalty revenue by providing value added technology.🚀 👉Expecting Arm market share of cloud compute to grow significantly faster than the overall cloud compute market.🚀 👉Establishing leadership in emerging tech sectors like #edgecomputing and #IOT etc (#ADAS AR)🚀 🎯 $𝑨𝑹𝑴 𝑪𝒉𝒂𝒍𝒍𝒆𝒏𝒈𝒆𝒔 𝒂𝒏𝒅 𝑪𝒐𝒎𝒑𝒍𝒆𝒙 𝑹𝒆𝒍𝒂𝒕𝒊𝒐𝒏𝒔𝒉𝒊𝒑 𝒘𝒊𝒕𝒉 $ARM #𝑪𝒉𝒊𝒏𝒂 👉 $ARM China operates independently from Arm. 👉 $ARM holds only an indirect 4.8% interest in Arm China through a 10% stake in an intermediate entity called #Acetone Ltd🚩 👉 $ARM China contributed 24.5% of Arm's $2.68B revenue in fiscal 2023🚩 👉Late payments and "significant risks" associated with Arm China's business have posed challenges for Arm🚩 👉U.S. sanctions and rising competition in China raise concerns for China's long term prospects.🚩 Feel free to grab the complete report right here. If you find it valuable, give it a thumbs up 👍 and spread the word! 📥👍📤 https://drive.google.com/file/d/1t9fFuGUpDstauCF_Yu5VWas7_UbJHc0N/view?usp=sharing Follow me on Twitter :@anshuvajpayee
Is ARM a buy ?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet