Arm Holdings Sees Positive Analyst Upgrade Amid AI Developments
Susquehanna upgraded its rating on Arm Holdings (NASDAQ: ARM) from neutral to positive on Wednesday, maintaining a price target of $150. This adjustment follows a sell-off that has made Arm’s valuation attractive. The firm’s optimism is supported by advances in Arm’s AI XPU custom chip and a custom server CPU, contributing to projections for strong revenue growth this year.
On Tuesday, DigiTimes reported that Nvidia-powered Windows computers utilizing Arm technology are expected to launch later this year, potentially providing a significant revenue stream. Following the news, shares of Arm rose by 14.1% in early trading on Thursday, reflecting heightened investor interest.
Despite concerns regarding its valuation, Arm’s sustainable competitive advantage in power-efficient CPU architecture positions it well for long-term growth, especially in the AI sector where it collects royalties on its chip designs.
