In a report released today, Vivek Arya from Bank of America Securities reiterated a Buy rating on ARM Holdings PLC ADR, with a price target of $205.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight ARM Holdings PLC’s strong market positioning and growth potential. The company has demonstrated impressive performance by exceeding sales and earnings expectations, driven by robust momentum in the data center sector and increased contributions from SoftBank. ARM’s strategic advantages include gaining market share against x86 competitors, increasing content per core, and expanding the number of cores, which are expected to fuel further growth.
Additionally, ARM is poised to benefit from new opportunities in chiplet and silicon design, potentially through collaborations with major players like OpenAI and AVGO. While there are risks associated with increased spending and reliance on SoftBank, Arya anticipates ARM to consistently achieve 15-20% growth in sales and earnings per share over the next decade. The ongoing expansion in AI infrastructure globally positions ARM as a key beneficiary, justifying the maintained price objective and Buy rating despite some financial dependencies.
According to TipRanks, Arya is a 5-star analyst with an average return of 18.2% and a 61.24% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Advanced Micro Devices, and Broadcom.
In another report released today, Citi also maintained a Buy rating on the stock with a $200.00 price target.