William Blair Reiterates Outperform on ARM, Citing Long-Term AI Tailwinds

Core Viewpoint - Arm Holdings plc is recognized as a trending AI stock with long-term growth potential driven by structural tailwinds such as v9 royalties, AI demand, and full-chip solutions [1][2]. Group 1: Growth Catalysts - The company is expected to benefit from rising royalties due to the transition to v9 architecture and CSS [3]. - Arm is gaining market share in the data center sector, particularly against x86 competitors [3]. - The demand for AI is significantly increasing global computing needs, which is favorable for Arm [3]. - There is an expanded licensing opportunity as Arm develops full-chip solutions [3]. - A new product opportunity is anticipated to positively impact earnings per share (EPS) [3]. Group 2: Valuation Metrics - Arm shares are currently trading at a price-to-earnings (PE) multiple of 68 times the firm's calendar 2026 estimate [2][3]. - The firm continues to view Arm as a long-term winner in the semiconductor space due to its multiple growth drivers [2][3].