Arm Holdings PLC
NASDAQ:ARM

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Arm Holdings PLC
NASDAQ:ARM
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Price: 143.1018 USD 0.21%
Market Cap: 150.4B USD
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Gross Margin
Arm Holdings PLC

96%
Current
95%
Average
28.5%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
96%
=
Gross Profit
3.4B
/
Revenue
3.5B

Gross Margin Across Competitors

Country UK
Market Cap 150.1B USD
Gross Margin
96%
Country US
Market Cap 3.2T USD
Gross Margin
76%
Country US
Market Cap 1.1T USD
Gross Margin
64%
Country TW
Market Cap 28.1T TWD
Gross Margin
54%
Country US
Market Cap 202.3B USD
Gross Margin
48%
Country US
Market Cap 175.8B USD
Gross Margin
56%
Country US
Market Cap 171.6B USD
Gross Margin
59%
Country US
Market Cap 120.4B USD
Gross Margin
22%
Country US
Market Cap 106.1B USD
Gross Margin
57%
Country US
Market Cap 97.1B USD
Gross Margin
40%
Country US
Market Cap 88.1B USD
Gross Margin
35%
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Arm Holdings PLC
Glance View

Market Cap
150.4B 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
40.7616 USD
Overvaluation 72%
Intrinsic Value
Price

See Also

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What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
96%
=
Gross Profit
3.4B
/
Revenue
3.5B
What is the Gross Margin of Arm Holdings PLC?

Based on Arm Holdings PLC's most recent financial statements, the company has Gross Margin of 96%.