In the week since Arm Holdings (NASDAQ: ARM) released fiscal year 2024 results, shares of the UK-based semiconductor chip designer have gained 8%, surging past $114 a share. That's the good news for Arm shareholders.

The bad news is that, according to investment bank Bernstein, buying Arm's stock after earnings was exactly the wrong thing to do. In a report released Thursday, Bernstein argued that Arm's stock remains overpriced, and should actually be sold, not bought.

Arm's results weren't all bad. True, fiscal 2024 sales grew only 21%, to $3.2 billion, and net income declined 43%, to $0.29 per share. Still, fourth-quarter results showed considerable momentum, with revenue rising 47% and earnings up almost an infinite amount from $0.00 per share a year ago to $0.21 per share in fiscal Q4.

Continue reading

Source Fool.com