Arm Holdings (NASDAQ: ARM) has surpassed x86 as the leading platform in AI servers, according to new data from research firm IDC, whose first-quarter AI infrastructure report revealed that accelerated server value on Arm climbed to $53 billion, up from below $30 billion as recently as the third quarter of 2025. IDC also raised its full-year forecast for AI infrastructure spending to $497 billion. Arm’s business model licenses its architecture and collects a royalty on every chip shipped, meaning competition among chipmakers leaves the company to collect revenue from all sides. In fiscal 2026, which ended March 31, Arm posted record revenue of $4.92 billion, a 23% increase year-over-year, with royalty revenue alone reaching $2.6 billion. Analysts expect earnings per share growth of 23% in fiscal 2027, followed by 42% in 2028, 32% in 2029, and 50% in 2030. The company carries a forward GAAP price-to-earnings ratio of 239.88x and a price-to-sales ratio of 51.84x, with roughly $310 billion in market capitalization, virtually no debt, and $3.6 billion in cash on hand. One area of investor uncertainty surrounds reports that Arm may begin selling its own chips. Over the past year, ARM stock has returned approximately 75%, though it trailed the iShares Semiconductor ETF (SOXX), which gained