Arm Holdings: Raymond James Raises PT to $165 from $140, Maintains Outperform

Arm Holdings: Raymond James Raises PT to $165 from $140, Maintains Outperform

Raymond James & Associates has updated its price target for Arm Holdings (ARM) to $165, maintaining an "outperform" rating. The upgrade comes after the chip designer reported mixed fiscal Q1 results, with shares slumping following the earnings release [5]. Despite the recent dip, analysts remain bullish on the company's long-term prospects, citing strong revenue growth and AI momentum [1].

Arm Holdings specializes in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP, and associated systems IP, software, and tools. The company operates through the United Kingdom, United States, and Other Countries segments. The latest earnings report highlighted a 14x surge in data center customers driven by GenAI demand, indicating robust growth in the AI sector [2].

The upgrade by Raymond James reflects the company's strategic shift towards chip manufacturing and its potential to capitalize on the AI boom. Analysts have noted that Arm's focus on higher royalties and data center growth is a positive development, suggesting that the company is well-positioned to benefit from the increasing demand for AI and data center solutions [3].

While the recent earnings report showed a mixed performance, the long-term outlook for Arm Holdings remains promising. The company's strategic initiatives, such as developing its own chips and expanding its data center customer base, are expected to drive growth in the coming years [4].

In summary, Raymond James' updated price target for Arm Holdings reflects the company's strategic positioning in the AI and data center markets. The upgrade highlights the potential for significant growth and underscores the analyst's bullish stance on the company's long-term prospects.

References:
[1] GuruFocus.com, "ARM Holdings (ARM) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and AI Momentum"
[2] Insider Monkey, "Arm Holdings Sees 14x Surge in Data Center Customers Driven by GenAI Demand"
[3] Insider Monkey, "ARM Holdings (ARM): Embracing Higher Royalties and Data Center Growth"
[4] Reuters, "Exclusive: Arm estimates a 14-fold increase in data center customers since 2021, company says"
[5] Investing.com, "ARM Holdings reports soft guidance after mixed fiscal Q1 results; shares slump"