Arm’s 90% Rally Shines Light on High Multiple, Low Growth
- Stock is pricier than Nvidia, among most expensive in Nasdaq
- Last quarter’s forecast raised concerns about Arm’s growth
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One of the year’s best-performing artificial intelligence stocks could be about to face a rude awakening.
Arm Holdings Plc is due to report results after the market close, and investors are skeptical that the chip-design company will be able to justify the almost 90% share-price jump that has made it one of the most expensive stocks in the market. Fiscal second-quarter revenue is expected to grow just 0.6%, a far cry from the explosive trends seen by other AI companies. The shares were trading 1.4% higher as of 10:27 a.m. in New York.