Pro Research: Wall Street eyes ARM Holdings' growth potential

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ARM Holdings (LON:ARM) has become a focal point for Wall Street as the company's extensive presence in the semiconductor IP market continues to attract attention. With a business model that has evolved to prioritize royalty revenues and market-specific IP development, ARM is at the forefront of innovation in the semiconductor industry.

ARM Holdings, based in Cambridge, UK, is a semiconductor IP company that has revolutionized the tech industry with its CPU, GPU, and other semiconductor IP products. The company's technology is nearly ubiquitous in smartphones, and its IP has been used in over 250 billion chips worldwide. ARM's strategic shift to a more royalty-centric, end market-focused, and system-solution-based business model is expected to command higher royalty rates and accelerate revenue growth.

ARM's market position is exceptionally strong, with nearly 100% market share in smartphones and expanding into sectors such as automotive, industrial IoT, and datacenter compute. The company's diversification strategy is not only a response to the maturation of the smartphone market but also an anticipation of future growth areas. ARM's defacto ISA for low-power devices and its expansion into