Market Competition Risk: The emergence of alternative architectures like RISC-V and competition from established players in various segments could erode ARM's market share and pricing power.

Geopolitical and Trade Tensions Risk: International trade disputes, export controls, and geopolitical instability, particularly affecting the semiconductor supply chain and key markets like China, could disrupt ARM's licensing agreements and revenue streams.

Intellectual Property (IP) Licensing Model Risk: ARM's business model relies heavily on its licensees' success in product development and sales, meaning ARM does not directly control product market performance and is dependent on fluctuating royalty revenues.