Wells Fargo analyst Joseph Quatrochi has reiterated their bullish stance on ARM stock, giving a Buy rating today.
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Joseph Quatrochi has given his Buy rating due to a combination of factors including ARM Holdings PLC’s promising position in the AI sector and its expanding opportunities in the data center market. Despite the absence of a formal fiscal 2026 guidance, ARM’s forward commentary suggests potential growth in royalty revenue, particularly in the high-teens to low-20% year-over-year range.
ARM’s strategic partnerships with major players like NVIDIA, Google, and Microsoft are expected to drive significant momentum in the hyperscale server market, with ARM-based chips projected to account for about half of all shipments. Additionally, the company’s increasing traction in the Client and Server Systems (CSS) segment is anticipated to contribute to more substantial royalty revenue, further supporting the positive outlook for ARM’s financial performance.
ARM’s price has also changed moderately for the past six months – from $150.650 to $124.190, which is a -17.56% drop .