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• Astera Labs recently announced a collaboration with Arm Total Design to integrate its Intelligent Connectivity Platform with Arm Neoverse Compute Subsystems, aiming to streamline custom AI infrastructure chiplet solutions for clients seeking multi-protocol connectivity.

• This move highlights Arm Holdings’ expanding influence across the AI hardware supply chain, signaling growing adoption of its technologies in custom architectures beyond traditional markets.

• We’ll explore how Arm’s new partnerships in AI data center hardware may impact the company’s long-term investment case and market positioning.

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To be a shareholder in Arm Holdings, you need conviction that Arm’s ongoing expansion into AI infrastructure and custom chip solutions can successfully offset potential saturation in its core smartphone markets. The recent Astera Labs collaboration strengthens Arm’s industry partnerships but does not materially change the near-term focus on ramping AI data center design wins as the main catalyst, nor does it resolve the execution risks tied to diversification and rising R&D expenses.

Among recent announcements, the partnership with Astera Labs is the most relevant because it boosts Arm’s ability to embed its Neoverse Compute Subsystems in next-generation AI hardware. This underscores Arm’s growing footprint in custom architectures, directly tying into the current catalyst of gaining AI data center share, even as execution risk, particularly in new, complex verticals, remains front of mind for investors.

Yet, it’s worth contrasting that expanded opportunity with the ongoing risk that major customers could…

Read the full narrative on Arm Holdings (it’s free!)

Arm Holdings’ narrative projects $7.4 billion revenue and $2.3 billion earnings by 2028. This requires 21.5% yearly revenue growth and a $1.6 billion earnings increase from $699 million currently.

Uncover how Arm Holdings’ forecasts yield a $155.61 fair value, a 9% downside to its current price.

Compared to the consensus, the most optimistic analysts see Arm’s data center share soaring and forecast US$8.6 billion in revenues by 2028. They expect Arm’s industry partnerships and AI momentum could drive revenue and margin acceleration, though emerging competition and rising R&D costs suggest these bullish assumptions might face more volatility. As you weigh your own view, keep in mind just how wide the range of possible futures for Arm could be.

Explore 17 other fair value estimates on Arm Holdings – why the stock might be worth less than half the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arm Holdings research is our analysis highlighting 2 key rewards that could impact your investment decision.

• Our free Arm Holdings research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Arm Holdings’ overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ARM.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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TotalEnergies is close to restarting one of Africa’s biggest energy projects four years after it was halted by a terrorist attack, with the French group and its partners judging that it is safe to proceed.

The $20bn plan for a liquefied natural gas project in Mozambique has been on hold since 2021 when a deadly attack by Islamist militants in the Cabo Delgado province where the project is located prompted TotalEnergies to activate a contractual get-out, known as force majeure.

On Saturday, Total said that the consortium behind the project had “taken the decision to lift the Force Majeure” and that it had informed the Mozambican government.

The decision is a key step towards resuming a project that has been touted as potentially transformative for Mozambique’s economy. Also backed by Japanese energy company Mitsui, the project will have a maximum capacity of up to 43mn tons of LNG per year.

Mozambique’s government must approve updates to the budget for the project, known as MozambiqueLNG, before it is relaunched, Total added.

MozambiqueLNG has been backed with loans from countries including the US government and is strategically important project for Total, as it seeks to increase its production of LNG.

Following the 2021 attack, Mozambique’s military collaborated with Rwandan forces to restore order to the province, including protecting the Afungi Peninsula where the Total-led project and a $30bn development led by US oil company ExxonMobil are based.

Lifting of force majeure is a positive development for Exxon’s planned project. Last month the company’s chief executive Darren Woods sought reassurances from Mozambican president Daniel Chapo about security of the region.

TotalEnergies move to lift force majeure is a signal that concerns over the safety of employees and the security of the project have eased.

Despite the potential economic benefits of MozambiqueLNG, it has been dogged by controversy, including allegations of human rights abuses by Mozambican soldiers protecting the project.

This year, the FT reported that the UK government was seeking legal advice over how to pull out of its $1.15bn backing for the project, while it has also commissioned a human rights review of the development.