Analyst Joseph Quatrochi of Wells Fargo maintained a Buy rating on ARM Holdings PLC ADR (ARM – Research Report), boosting the price target to $185.00.
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Joseph Quatrochi’s rating is based on ARM Holdings PLC’s strategic positioning to capitalize on the growing opportunities within the AI sector. Despite limited changes to forward estimates and a slight decrease in forward earnings per share due to increased operational expenses, the company is expected to benefit from its involvement in AI advancements. The company’s recent developments, such as its collaboration on NVDA’s Arm-based Blackwell CPU and investments in AI research and development, further solidify its strong position in the AI market.
Additionally, ARM’s V9 technology is expected to see significant revenue growth as data center clients begin adoption, with projections for its market penetration to reach maturity in the coming years. The initial success of their CSS products, driven by partnerships with companies like MediaTek and Microsoft, indicates a robust pipeline for future growth. Despite ongoing litigation with QCOM, ARM’s strategic initiatives and market potential justify the Buy rating assigned by Quatrochi.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $195.00 price target.