Arm (ARM) stock soared today as new artificial intelligence (AI) news promoted updated coverage from five-star Barclays analyst Thomas O’Malley. The big news lifting ARM stock up is its connection to President Donald Trump’s $500 billion Stargate AI initiative. This is a collaborative AI infrastructure project between OpenAI, Softbank (SFTBY), and several other tech companies. Arm is included in these and is listed as a tech partner in the AI infrastructure agreement.
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Arm CEO Rene Haas discussed this new collaboration in an interview with CNBC, noting that the financial aspects are still being finalized. The CEO also pointed out that Softbank CEO Masayoshi Son is enthusiastic about its investment in Arm alongside this news.
Following this positive news, O’Malley updated his coverage of ARM stock. The Barclays analyst reiterated a Buy rating for the shares while increasing his price target from $145 to $155 each. This represents a potential 12.66% downside for ARM.
What This Means for ARM Stock
ARM shareholders are incredibly excited about the company’s involvement in the Stargate collaboration, which caused shares to rally 15.27% as of this writing. That builds on a 45.02% increase year-to-date and comes alongside heavy trading. This has over 18 million units changing hands today compared to a three-month daily average of 4.63 million shares.
Is ARM Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Arm is Moderate Buy based on 14 Buy, four Hold, and one Sell ratings over the last three months. With that comes an average price target of $155.73, a high of $180, and a low of $100. This represents a potential 12.85% downside for ARM shares. Investors will note that today’s news may trigger additional analyst updates.
