UBS Maintains Buy Rating for Arm Holdings, PT Down to $175

UBS Maintains Buy Rating for Arm Holdings, PT Down to $175

July 2, 2025

UBS has maintained a buy rating for Arm Holdings (ARM) but has revised the price target down to $175. The financial services giant cited the company's strong Azure and AI tailwinds as the primary drivers for its positive outlook [1].

The latest update comes as Arm Holdings continues to navigate the evolving landscape of the semiconductor industry, particularly in the realm of artificial intelligence (AI) and data center growth. The company has seen a surge in data center customers, driven largely by the increasing demand for AI applications [2].

UBS analysts highlighted the potential for Arm Holdings to benefit from higher royalties and the company's expanding global tech influence. The firm's strategic shift towards chip manufacturing is also expected to bolster its long-term growth prospects [3].

Despite the positive outlook, Arm Holdings has faced challenges in recent quarters, including a disappointing Q2 EPS outlook and soft profit forecasts. These developments have led to fluctuations in the stock's performance, but the company's focus on AI and data center growth remains a key driver for its future prospects [4].

The financial markets have been closely watching Arm Holdings' earnings reports and guidance, with analysts closely monitoring the company's ability to meet expectations. The latest earnings call highlighted the company's strong revenue growth and AI momentum, providing further evidence of its resilience in the competitive semiconductor industry [5].

As the semiconductor sector continues to evolve, Arm Holdings' strategic positioning in the AI and data center markets could prove to be a significant advantage. UBS's revised price target reflects the company's potential to capitalize on these growth opportunities, while maintaining a cautious approach due to the inherent risks in the industry [6].

References:
[1] https://finviz.com/quote.ashx?t=ARM&ty=oc
[2] https://www.insider.com/arm-holdings-stock-14x-surge-data-center-customers-genai-demand-2025-07-01
[3] https://www.morningstar.com/research/stocks/arm-holdings-plc/139966/analyst-report
[4] https://www.investopedia.com/articles/investing/082415/arm-holdings-stock-sinks-amid-soft-profit-forecast-firm-may-make-own-chips.asp
[5] https://www.gurufocus.com/stock/ARM/earnings
[6] https://www.marketwatch.com/story/arm-holdings-stock-sees-rs-rating-climb-to-73-2025-06-05