` ARM (Arm Holdings PLC) vs S&P 500 Comparison - Alpha Spread

ARM
vs
S&P 500

Over the past 12 months, ARM has underperformed S&P 500, delivering a return of -10% compared to the S&P 500's +14% growth.

Stocks Performance
ARM vs S&P 500

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ARM
S&P 500
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Performance Gap
ARM vs S&P 500

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ARM
S&P 500
Difference
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Performance By Year
ARM vs S&P 500

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Competitors Performance
Arm Holdings PLC vs Peers

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Arm Holdings PLC
Glance View

Market Cap
121B USD
Industry
Semiconductors

Arm Holdings PLC, nestled in the heart of Cambridge, England, is a formidable player in the semiconductor industry without actually creating chips themselves. The magic of Arm lies in its intellectual property: they are architects crafting the blueprints for the microprocessors that power a substantial percentage of the world's digital devices. Instead of manufacturing chips, Arm specializes in designing cutting-edge processor architectures and licensing these designs to a vast array of technology companies. These include giants like Apple and Samsung, who use Arm's designs as the foundational building blocks for their own products. This approach allows Arm to operate with a unique business model that does not require heavy capital investments in manufacturing facilities, yet enables them to have a significant global reach. In the ecosystem of digital innovation, Arm's strength is its ability to create highly efficient, low-power designs that are ideal for mobile devices, embedded systems, and increasingly for high-performance computing and data centers. The company's revenue streams are primarily driven by licensing fees from its partners, who pay to access Arm's extensive portfolio of designs, and royalties from the sales of end products utilizing these designs. With each smartphone, tablet, or digital gadget that rolls off global assembly lines bearing its intellectual fingerprint, Arm earns a fraction of the resultant sales. This model not only provides Arm with profitability tied to the growth of the tech sector but also aligns their success with the broader industry's advancements and consumer trends.

ARM Intrinsic Value
43.42 USD
Overvaluation 62%
Intrinsic Value
Price
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