Analyst Reiterates Positive Outlook on Arm Holdings Plc with Price Target of $180

Analyst Reiterates Positive Outlook on Arm Holdings Plc with Price Target of $180

Rosenblatt analyst Hans Mosesmann has reaffirmed a positive stance on Arm Holdings Plc, emphasizing a Buy rating and a price target of $180. This comes following observations from Computex in Taiwan that highlighted promising ARM PC and compute themes, which are expected to boost the adoption of the company's IP moving forward. The analyst underscored the increasing pervasiveness of Arm's intellectual property (IP) and its potential implications for future growth.

In response to recent developments, the analyst made adjustments to the licensing revenues for upcoming quarters to ensure better alignment with revenue recognition timing. However, Mosesmann maintained his full-year fiscal 2025 sales and adjusted earnings per share (EPS) estimates. Additionally, reports have surfaced regarding CEO Rene Haas' aim to capture over 50% of the Windows PC market within a five-year timeframe post Microsoft Corp's plans to introduce a new range of AI-enhanced PCs utilizing Arm's technology.

Over the past year, Arm stock has noted significant growth, surging by 120%. Meanwhile, investors looking to tap into the semiconductor sector can explore opportunities through various ETFs like EA Series Trust Strive U.S. Semiconductor ETF (SHOC) and Columbia ETF Trust I Columbia Seligman Semiconductor And Technology ETF (SEMI). As of the latest check on Monday, Arm shares were trading higher by 2.78% at $140.40. It is worth noting that Nvidia continues to maintain a dominant position as a key beneficiary of AI advancements, with analysts revising estimates following recent events in Taiwan.