
Arm Holdings PLC
NASDAQ:ARM

Operating Margin
Arm Holdings PLC
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Operating Margin Across Competitors
Country | Company | Market Cap |
Operating Margin |
||
---|---|---|---|---|---|
UK |
![]() |
Arm Holdings PLC
NASDAQ:ARM
|
139.7B USD |
21%
|
|
US |
![]() |
NVIDIA Corp
NASDAQ:NVDA
|
3.3T USD |
63%
|
|
US |
![]() |
Broadcom Inc
NASDAQ:AVGO
|
1.1T USD |
35%
|
|
TW |
![]() |
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
|
25.5T TWD |
47%
|
|
US |
![]() |
Advanced Micro Devices Inc
NASDAQ:AMD
|
185.5B USD |
10%
|
|
US |
![]() |
Texas Instruments Inc
NASDAQ:TXN
|
171.2B USD |
34%
|
|
US |
![]() |
Qualcomm Inc
NASDAQ:QCOM
|
169.1B USD |
28%
|
|
US |
![]() |
Analog Devices Inc
NASDAQ:ADI
|
112.1B USD |
22%
|
|
US |
![]() |
Micron Technology Inc
NASDAQ:MU
|
110.3B USD |
20%
|
|
KR |
![]() |
SK Hynix Inc
KRX:000660
|
137.7T KRW |
39%
|
|
US |
![]() |
Intel Corp
NASDAQ:INTC
|
93.3B USD |
-8%
|
Arm Holdings PLC
Glance View
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.

See Also
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Based on Arm Holdings PLC's most recent financial statements, the company has Operating Margin of 20.7%.