Arm share price: 2024 forecast

The average forecast price is $65.45, indicating a potential decrease of about 6.19% from its current price. The forecasts range from a minimum of $46.00 to a maximum of $110.00. Out of 20 analysts, a majority recommend ARM Holdings stock as a strong buy or buy​.

Arm had its initial public offering in September 2023, starting at $51 per share. By December 28, 2023, the stock hit a high of $77.47 but later dropped to an approximate value of $72.

Morningstar, investment research, and management specialist, believes Arm Holdings has a strong presence in the technology market, especially in the smartphone and wearable segments, where it virtually dominates with a 99% market share in smartphones. The company is also expanding its reach into the data centre and automotive sectors, areas with significant growth potential. Arm's chips are known for their energy efficiency, though they are less powerful compared to the x86 architecture used by companies like Intel and AMD.

Financially, Arm is on solid ground, boasting $1.6 billion in cash reserves and carrying no debt. Arm is expected to utilise its internal cash flow for business reinvestment, focusing on research and development, share buybacks, or further strengthening its financial position.

A little bit of history

Arm has a history that is integral to the evolution of the electronics industry. Founded on 27th November 1990, Arm originated from a joint venture between Acorn Computers, Apple Inc., and VLSI Technology. Its initial aim was to develop a new microprocessor, the ARM6, which was used in Apple’s Newton personal digital assistant. This marked the beginning of Arm's journey in the microprocessor domain.

During the 1990s, Arm expanded its focus from its initial design to licensing IP cores. This strategy proved revolutionary, allowing a multitude of manufacturers to create Arm-based processors tailored to their specific needs. This business model was unlike that of other semiconductor companies, which typically manufactured and sold their own products. By licensing its designs, Arm enabled a diverse range of applications, from mobile phones to industrial equipment.

The early 2000s saw Arm's technology becoming a standard in the burgeoning mobile phone market. The company's energy-efficient processor designs were ideal for mobile devices, leading to widespread adoption by major manufacturers. Arm's Cortex-M series, launched in 2004, further solidified its position in the microcontroller market.

Arm's influence extended beyond traditional electronics, playing a pivotal role in the development of the Internet of Things (IoT) and wearable technology. Its low-power, high-performance processors became the backbone of numerous devices connected to the Internet.

In 2016, Arm was acquired by SoftBank Group, a Japanese conglomerate, for £24 billion. This acquisition was a testament to Arm's value and influence in the technology sector. However, in 2020, NVIDIA announced plans to acquire Arm from SoftBank for $40 billion, a move that generated significant attention in the industry.

A culture of innovation

Sir Robin Saxby joined Arm in 1991, taking on the role of CEO at a critical juncture in the company's development. His leadership and vision were instrumental in steering Arm through its early challenges and setting it on the path to becoming a global semiconductor powerhouse.

Saxby was known for fostering a culture of innovation and collaboration within Arm. He prioritised research and development, ensuring that Arm remained at the forefront of technological advancements in the semiconductor field. This focus on innovation under Saxby's leadership helped Arm to consistently introduce products that kept pace with rapidly evolving market needs.

Saxby's contributions extended beyond Arm's operational strategies. He was a charismatic leader who played a significant role in establishing key partnerships and alliances within the tech industry. These relationships were crucial in cementing Arm's position as a leader in the semiconductor sector.

In recognition of his contributions to the technology industry, Robin Saxby was knighted in 2002. His tenure at Arm, which lasted until 2007, is remembered as a period of extraordinary growth and innovation. Saxby's vision and leadership not only shaped Arm Holdings but also had a lasting impact on the global semiconductor industry.