Arm shares trade at $210.33, 53.5% below their 52-week high of $452.70 and down 36.75% over the past month, even as revenue keeps growing above 20%. Royalty revenue rose 22% to $715 million and licensing grew 23% to $574 million, while demand for the AGI CPU, with Meta Platforms as lead partner, is said to exceed $2 billion. However, last quarter's GAAP EPS of $0.25 missed the $0.40 consensus, operating margin slipped to 7% from 11% as opex rose 28% to $1.16 billion, and the stock trades at 217x trailing earnings. Among 43 analysts, the average target of $290.70 implies 38.2% upside. The article lists risks including smartphone weakness, China exposure, SoftBank's control, a Qualcomm trial expected in Q4 calendar 2026 and a beta of 3.79.
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