William Blair analyst Sebastien Naji has reiterated their bullish stance on ARM stock, giving a Buy rating today.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Sebastien Naji’s rating is based on ARM Holdings PLC ADR’s strong financial performance and promising future outlook. The company reported impressive fiscal second-quarter results, with a 34% year-over-year increase in revenue, driven by significant growth in both licensing and royalty streams. This growth was particularly notable in the smartphone and data center segments, where the adoption of v9 and CSS-based products is accelerating.
Looking ahead, ARM’s momentum is expected to continue into the fiscal third quarter, with projected revenue growth of 25% year-over-year. The company anticipates sustained demand for its CPUs from hyperscalers and a growing mix of higher-royalty products, alongside strong demand in the automotive sector. These factors contribute to a positive outlook, supporting Naji’s Buy rating for the stock.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $181.00 price target.