Arm's 90% Rally Shines Spotlight on High Multiple, Low Growth.

Arm Holdings Plc, a leading chip-design company in the AI industry, is facing skepticism from investors due to its high valuation and low growth expectations. Despite being instrumental in new tech developments, Arm's stock price has surged, making it one of the most expensive stocks in the market. Analysts are divided on the stock's future performance, with concerns about its ability to justify its valuation and compete in a challenging industry. While some believe Arm will grow into its valuation over time, others question its growth potential and revenue sources outside of AI. The company's upcoming earnings report and decision to cancel a key license with Qualcomm are key factors influencing investor sentiment. [Extracted from the article]