Moat Index
Companies· Semis

ArmARM

Moat score

Owns the instruction set the world’s software is compiled for, and charges rent on every chip that runs it.

MOATE3.7Deep
3.7 Deep
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DimensionMOATECommunity
Switching costsweight 15Software ecosystems, toolchains, and decades of optimization target the Arm ISA; moving means recompiling the world.9
Network effectsweight 15More Arm chips attract more software, which attracts more chip designs — the ISA compounds.8
Scale & cost advantageweight 12A licensing business with modest revenue; scale is in reach, not in cost.6
Brand & pricing powerweight 12Royalty rates have risen with each architecture generation and customers have paid.7
Cornered resourceweight 12The instruction set architecture and the IP around it — unbuyable and un-cloneable without a license.9
Distribution controlweight 12Inside essentially every smartphone and a growing share of data-center silicon.8
Disruption resilienceweight 12RISC-V is the credible open alternative; adoption is real but the software gap is wide.6
Independenceweight 10SoftBank control, litigation with Qualcomm, and export-control exposure.5

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How strong is Arm's moat?

Question 1 of 8

Switching costs

Switching costs · weight 15

How painful — in money, time, risk, retraining — is it for a customer to leave?

5