3 Reasons to Stay Far Away From Arm Holdings Stock
Outside of PCs and servers, nearly everything with a CPU runs on Arm's (NASDAQ: ARM) architecture. Some customers license Arm's CPU cores, while others license the architecture and design their own custom chips. Either way, Arm receives a royalty.
Nearly every smartphone uses Arm chips, as do most tablets and smart TVs. A big chunk of all embedded processors are Arm-based as well, and the company is slowly making headway in the PC and server CPU market. Apple now uses custom Arm chips for its Mac computers, and start-up Ampere is pushing Arm-based server chips as an alternative to Intel and .
While investors are excited about Arm following its IPO this week, there are a few reasons to be wary of the stock.
Source Fool.com