JULIAN YATES | INVESTEC
The stock has been weak, but with a) no structural issues here (we see cyclical issues causing the royalty weakness), b) royalty growth is likely to pick up, plus c) licence strength suggesting strong medium-term royalties, we see current weakness as a buying opportunity.
ADNAAN AHMAD | BERENBERG
Our Buy thesis hinges on the fact that as the wireless market (smartphones and tablets) switch to newer technologies – either higher core counts (single, dual to multi-core) or moving from 32-bit architectures to 64-bit – Arm should see royalty rate inflation.
NICHOLAS JAMES | NUMIS
Generally, the strength in Arm’s licensing (over 42 per cent year-on-year growth has to be acknowledged as quite stunning) and its engagement in new products is clearly driving huge confidence in the longer term growth prospects for the business.