Is Arm Holdings Stock Going to $145? 1 Wall Street Firm Thinks So.

Core Viewpoint - The company reported record revenues in its recent earnings report, but the stock price fell due to high valuation concerns despite strong growth expectations [1][2]. Group 1: Financial Performance - Arm reported a year-over-year revenue growth of 47%, driven by the adoption of its Armv9 chip technology, which significantly boosted royalty revenue [2]. - The company's remaining performance obligations increased by 45% year over year, indicating substantial growth potential [2]. - The consensus Wall Street estimate projects the company's earnings per share to grow at an annualized rate of 40% in the coming years [2]. Group 2: Future Outlook - Management has guided for revenue growth to decelerate, projecting a range between 17% and 27% for fiscal 2025 [3]. - Strong demand for Armv9 in sectors such as smartphones, automotive, and cloud services is noted, although this is partially offset by weaker results in the Internet of Things [3]. - The stock's forward price-to-earnings ratio is high at 68, which may continue to pressure the stock price amid slowing growth [3].