If they aren't making money and aren't likely to be making a lot of money at any time in the future, it doesn't seem low - regardless of whatever impact you perceive. One of the problems that ARM faces is that people have alternatives or can create them. For example, you talk about Apple, but Apple is only licensing the instruction set. Instruction sets have some value, but the real value that ARM provides is in their core design. However, more players are looking to design their own cores. Apple already does and Qualcomm is looking to do the same. That would really harm ARM's revenue stream.
Did ARM bring about these paradigm shifts or were they merely a convenience? Apple started using ARM in their iPhone because it was a convenient and affordable low powered processor, but if ARM had wanted more for their IP, people wouldn't have used ARM in the first place.
It's one of the reasons that companies like to bait-and-switch if they can. Get people using your product for cheap and then hike the price once everyone is using your thing. You then argue that you've created so much value via your product - but everyone would have just used something else if you'd charged a lot from the beginning.
ARM's in a tough place where Apple has an architecture license and makes their own cores and others are looking to follow that lead. As ARM tries to generate profits, others are there to stop that from happening. I'm not as bullish on RISC-V as many on here (it just takes a long time to get to the level that high-end ARM chips are at), but it could certainly start eliminating some business and provides a hedge against ARM increasing prices.
CNBC is saying ARM's PE ratio is 170. Where's its growth going to come from to justify that? With Nvidia, we see major growth. Nvidia has a differentiated product with some lock-in around CUDA and such. ARM's largest customers are looking to pay ARM less money going forward. If ARM loses its suit against Qualcomm/Nuvia and Qualcomm stops using ARM's cores, what happens to ARM's revenue/profits?
Some businesses that have a large impact only have that large impact because they were offering an affordable product. That affordability limits their valuation. Without that affordability, the world would have gone in another direction. Right now, ARM is trying to figure out how to pump up its profits given the slight amount of lock-in it commands. However, I think it's more likely that ARM will just hasten companies moving to their own core designs and investing more in RISC-V.
If they aren't making money and aren't likely to be making a lot of money at any time in the future, it doesn't seem low - regardless of whatever impact you perceive. One of the problems that ARM faces is that people have alternatives or can create them. For example, you talk about Apple, but Apple is only licensing the instruction set. Instruction sets have some value, but the real value that ARM provides is in their core design. However, more players are looking to design their own cores. Apple already does and Qualcomm is looking to do the same. That would really harm ARM's revenue stream.
Did ARM bring about these paradigm shifts or were they merely a convenience? Apple started using ARM in their iPhone because it was a convenient and affordable low powered processor, but if ARM had wanted more for their IP, people wouldn't have used ARM in the first place.
It's one of the reasons that companies like to bait-and-switch if they can. Get people using your product for cheap and then hike the price once everyone is using your thing. You then argue that you've created so much value via your product - but everyone would have just used something else if you'd charged a lot from the beginning.
ARM's in a tough place where Apple has an architecture license and makes their own cores and others are looking to follow that lead. As ARM tries to generate profits, others are there to stop that from happening. I'm not as bullish on RISC-V as many on here (it just takes a long time to get to the level that high-end ARM chips are at), but it could certainly start eliminating some business and provides a hedge against ARM increasing prices.
CNBC is saying ARM's PE ratio is 170. Where's its growth going to come from to justify that? With Nvidia, we see major growth. Nvidia has a differentiated product with some lock-in around CUDA and such. ARM's largest customers are looking to pay ARM less money going forward. If ARM loses its suit against Qualcomm/Nuvia and Qualcomm stops using ARM's cores, what happens to ARM's revenue/profits?
Some businesses that have a large impact only have that large impact because they were offering an affordable product. That affordability limits their valuation. Without that affordability, the world would have gone in another direction. Right now, ARM is trying to figure out how to pump up its profits given the slight amount of lock-in it commands. However, I think it's more likely that ARM will just hasten companies moving to their own core designs and investing more in RISC-V.