Last year, chip design company Arm Holdings (NASDAQ: Arm) was one of Wall Street's hottest initial public offerings. Shares have corrected recently after soaring out of the gates on hype over its artificial intelligence (AI)-related tailwinds. Today, the stock trades nearly 30% off its high.
The company designs products that serve as the foundation of modern semiconductors; roughly half of the world's chips use designs owned by Arm. An increasingly digital world warrants more chip demand, meaning more Arm royalties. But is the stock already priced too high despite its recent stumble?
Here is what you need to know.
Source Fool.com