$ARM Arm Holdings plc Deep Dive and 2024 Outlook

The fabless IP semiconductor stock has been moving much higher in the last 2 months on AI boom, but is it a buy?

Arm Holdings plc, a British semiconductor and software company, specializes in designing central processing unit (CPU) cores based on the ARM architecture family. Founded in 1990 as Advanced RISC Machines Ltd, Arm's primary products include microprocessor designs, graphics processing unit (GPU) designs, and neural processing unit (NPU) designs.

The company also offers software development tools, system-on-a-chip (SoC) infrastructure, and platforms. Arm's technology is widely used in embedded systems, particularly in smartphones, and its CPUs are present in various computing devices. Arm has diversified into automotive and infrastructure markets, with a focus on high-performance computing (HPC) and cloud computing through its Neoverse product line.

The company boasts a global presence with offices in 21 countries and over 6,000 employees. Arm's success is underpinned by its innovative IP business model, allowing the licensing of its processor designs to numerous companies. Notable customers include major tech giants like Apple, Nvidia, Amazon, and Qualcomm. Arm's recent IPO in 2023, with SoftBank as its majority owner, marked a significant milestone, reflecting its leading position in the semiconductor industry.