Arm Valuation Hits Stratosphere as AI Frenzy Widens
- Price relative to projected revenue is twice that of Nvidia’s
- Arm’s shares are more expensive than any in the S&P 500 Index
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Arm Holdings Plc was already one of world’s most expensive stocks for its size heading into last week’s earnings report. After three days of manic share buying, it’s now in a league of its own.
The stock is priced at 38 times revenue projected over the next 12 months, after jumping more than 90% since the chip designer gave a bullish sales forecast that it attributed in part to artificial intelligence spending. That’s far more expensive than any stock in the Nasdaq 100 or the S&P 500, including Nvidia Corp., according to data compiled by Bloomberg.