Should You Buy Arm Stock Before Nov. 6?

Arm Holdings (NASDAQ: ARM) has been a rising star in the semiconductor industry. Its technology is used in half of all chips and virtually every smartphone, including Apple's iPhone 16, according to reports. Shares have soared 141% since its initial public offering last year.Arm's lucrative business model based on licensing and royalty revenue makes it a solid business. However, while investors might be tempted to buy shares, the stock's high valuation gives me pause. With another quarterly earnings report coming on Nov. 6, there is the potential for an earnings miss to send the stock down, and investors might be wondering if it makes sense to buy before the report on the second quarter of its 2025 fiscal year comes out.Arm is an outstanding business. Its fiscal first-quarter revenue accelerated 39% year over year, driven by record licensing revenue. The company signed several licensing agreements in the quarter. Alphabet's Google and Amazon Web Services are prominent cloud service providers using Arm-based chips in their data centers.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool