Shares of Arm Holdings (NASDAQ: ARM) have surged for two consecutive days, driven by Nvidia’s bullish forecast of a $200 billion market for CPUs and an expected $20 billion revenue from its Vera CPU, which is licensed from Arm. As of 11:50 a.m. ET, Arm’s stock was up 3.1% following gains earlier in the session.
Arm is positioned to significantly benefit from the growing CPU sector, having introduced its own chip, the Arm AGI CPU, with projections of $15 billion in revenue by fiscal 2031. The company aims for a total annual revenue of $25 billion. However, it currently trades at a high valuation with a price-to-sales ratio of 65, reflecting strong demand and expectations in the market.
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