首页 News 正文

Has the 'AI darling' fallen out of favor? Bernstein rare downgrade of Arm rating, bluntly stating valuation 'too high'

家有宅男卫
1104 0 0

On Thursday Eastern Time, technology stocks in the US stock market collectively suffered a heavy decline. Among them, the stock price of chip design giant Arm fell particularly sharply: Arm's stock price fell more than 9% during Thursday's trading session and ultimately closed down 8.48%.
Arm has been one of the biggest winners of this year's AI spending boom. However, on Thursday Eastern Time, well-known Wall Street investment bank Bernstein rarely lowered its rating on the company, which is also one of the key reasons for Arm's sharp decline in stock price on Thursday.
Bernstein rarely downgraded its rating
On Thursday Eastern Time, Bernstein analyst Sara Russo released the latest report, downgrading Arm's rating to "weaker than the market," which is essentially equivalent to a "sell" rating.
Her latest target price for Arm is $100. Even after Thursday's sharp drop, this target price is still about 30% lower than Arm's closing price on Thursday ($141.3).
This also means that Lasso has become one of the few analysts on Wall Street who are bearish on Arm. Less than 10% of Wall Street companies tracked by Bloomberg hold a bearish view on Arm, while nearly 60% of companies give Arm a "buy" recommendation.
The long-term prospects of (Arm) stock are still very attractive, "she wrote," but what is the price? Given the strong performance and valuation of the stock this year, it is difficult for us to find further upward space
Is the valuation of 'AI darling' too high?
Since the beginning of this year, Arm's stock price has surged by 88%, making it one of the undisputed "AI darlings".
Before Thursday's sharp decline, the company was the third highest rising stock price of the year among the constituent stocks of the NASDAQ 100 index, far outperforming most other constituent stocks of the index and most chip stocks in the US stock market. In contrast, the Nasdaq 100 index itself has risen by 21% this year, while the Philadelphia Stock Exchange Semiconductor Index has risen by 23%.
This strong stock price trend largely reflects Arm's position in the field of artificial intelligence. Last quarter, Arm's revenue far exceeded expectations, but investors have been disappointed due to the company's failure to improve its performance outlook.
Bernstein analysts have raised concerns about how much revenue Arm can generate beyond artificial intelligence, given the range of issues faced by companies in industries such as global automotive manufacturing.
Lasso et al. wrote in their report, "As is well known, most companies related to artificial intelligence are performing well. However, considering the cyclical headwinds, especially those outside of the memory business, we are concerned about Arm's revenue prospects for businesses other than AI in fiscal year 2025
The analyst wrote, "Taking all these factors into account, we believe that Arm is not immune to the impact of these cyclical adverse factors, especially in terms of patent fees
Lasso also lowered the company's revenue target for the fiscal year 2025 and added that Arm's stock valuation of 45 times fully diluted earnings per share in 2026 is "too high".
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

  •   苹果知名分析师郭明錤周四(10月31日)在社交媒体上发文表示,苹果明年可能会减少对芯片制造商博通Wi-Fi芯片的依赖,并推出自己的处理器。   郭明錤在社交媒体平台X上写道,“在2025年下半年的新产品(例如iPh ...
    uturn
    昨天 14:42
    支持
    反对
    回复
    收藏
  •   10月30日,小鹏汽车生态企业小鹏汇天宣布,旗下分体式飞行汽车“陆地航母”即将亮相2024中国航展,11月12日将在中国航展第二展区(斗门莲洲)进行全球首次公开飞行,同时“陆地航母”也将在珠海国际航展中心8号 ...
    yxtianyouyou
    前天 11:43
    支持
    反对
    回复
    收藏
  •   交易所监管文件显示,当地时间11月1日,亚马逊创始人杰夫·贝索斯拟出售约1635万股亚马逊股票,预计套现约30.5亿美元。今年7月,贝索斯已申请额外出售约2500万股亚马逊股票,按当时股价计算可套现约50亿美元。 ...
    blueskybb
    10 小时前
    支持
    反对
    回复
    收藏
  •   近日,凯撒海湾目的地(山东)运营管理有限责任公司(简称“凯撒海湾”)与携程旅悦集团签署战略合作协议,双方将围绕“海上目的地运营”、“旅游产品与服务创新”、“研学旅行”、“日韩及海外旅游市场开拓”等 ...
    llyyy2008
    9 小时前
    支持
    反对
    回复
    收藏
家有宅男卫 新手上路
  • 粉丝

    0

  • 关注

    0

  • 主题

    4