Morningstar
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Apr 28, 2026
Arm Holdings plc: Arm: Launches CPU Business as It Wants More of the Pie; Fair Value Estimate to $135 From $80
Summary
Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world’s smartphone CPU cores. It also has high market share in other battery-powered devices like wearables, tablets, and sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf design
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