Core Thesis - Arm Holdings plc is viewed positively due to its strong growth prospects and competitive advantages in the semiconductor industry [1][6] Company Overview - Arm Holdings is a British semiconductor and software design company that licenses its processor designs to major firms, creating a capital-light and recurring revenue stream [2] - The company focuses on energy-efficient RISC architecture, making it essential in mobile devices and increasingly relevant in PCs, data centers, automotive, and AI [3] Growth Outlook - Arm's revenue is expected to grow at an annual rate of 20-22% through 2030, significantly outpacing semiconductor industry averages [4] - Recent fiscal Q1 results showed a 12% year-over-year revenue increase to $1.05 billion, with gross margins near 98% [4] Financial Position - The company has a strong balance sheet with $2.9 billion in cash and minimal debt [5] - However, the current valuation is high, trading at approximately 93x FY26 earnings and a PEG of 3.2x, indicating limited near-term upside [5] Analyst Perspective - Analysts maintain a "Hold" rating on Arm, with a target price of $184 for FY28 and suggest an attractive entry point below $130 per share [5]