Can Arm Holdings Stock Soar Higher in 2024?
After a brief period of decline following its autumn 2023 IPO, shares of semiconductor technology patent and licensing company Arm Holdings (NASDAQ: ARM) rocketed higher to close out the year. At the end of 2023, the stock was up nearly 20% from when it made its publicly traded debut.
The price runup can be attributed to investors who are optimistic that a resurgence in chip sales in 2024 could spell big financial gains for Arm. However, I'm not so sure the recent run higher in the stock can continue unabated. Here's why.
Arm develops and owns intellectual property (IP) for key chip processor technology. One of its biggest customers is Apple, which uses Arm heavily for its iPhone and MacBook (M1, M2, and M3) processors. Arm earns revenue in two stages, as a typical patent and IP manager does: licenses and royalties.
Source Fool.com
