Needham analyst Charles Shi has maintained their neutral stance on ARM stock, giving a Hold rating on October 22.
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Charles Shi has given his Hold rating due to a combination of factors including Arm’s recent financial performance and future outlook. The company reported better-than-expected results for the second quarter and provided guidance for the third quarter that exceeded consensus estimates. This was driven by an earlier than anticipated increase in smartphone royalties, a quicker pace in data center royalties, and some licensing deals being moved forward from the fourth quarter.
Despite these positive developments, the overall fiscal year outlook has only seen a slight improvement and remains largely in line with previous expectations. Additionally, while there is optimism regarding the potential success of opportunities related to SoftBank and OpenAI/Stargate, the company’s strategy around ASIC remains cautious. These factors contribute to the decision to maintain a Hold rating, reflecting a balanced view of the company’s current position and future prospects.
Shi covers the Technology sector, focusing on stocks such as Amkor, Entegris, and KLA. According to TipRanks, Shi has an average return of 15.8% and a 52.72% success rate on recommended stocks.
In another report released on October 22, Susquehanna also maintained a Hold rating on the stock with a $150.00 price target.