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Is Arm Stock a Buy on the Dip as Agentic AI Opportunity Emerges?

The Motley Fool·
Is Arm Stock a Buy on the Dip as Agentic AI Opportunity Emerges?

Arm Holdings shares declined following Q3 earnings despite strong revenue growth and management confidence in hitting $2 billion CPU revenue targets across fiscal 2027-2028. The company is expanding into custom CPU manufacturing for data centers, capitalizing on the agentic AI boom. While the stock trades at a high forward P/E of 55x, analyst estimates may undervalue long-term AGI CPU opportunities, making it potentially attractive on this dip.

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