Is Arm Holdings Stock a Buy on the Bullish CPU Outlook?

Arm Holdings announced strong fiscal Q1 earnings with 22% revenue growth and increased confidence in achieving over $1 billion in server CPU revenue by fiscal 2028. However, the analyst recommends against buying the stock due to its high forward P/E ratio of over 100, risks from competing with its own customers in the data center CPU market, and headwinds in its core smartphone business from elevated memory costs.