TD Cowen analyst Krish Sankar has maintained their bullish stance on ARM stock, giving a Buy rating today.
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Krish Sankar’s rating is based on the strong performance and growth potential of ARM Holdings PLC. The company demonstrated a solid beat in its recent quarterly results, driven by significant growth in licensing revenues and a doubling of data center and AI royalties year-over-year. This robust performance has led to an optimistic outlook for fiscal year 2026, with expected revenue growth of 20% year-over-year, supported by rising AI chip core counts and increasing royalty rates.
Furthermore, the adoption of ARMv9 in smartphones and the expansion of partnerships, such as the new collaboration with META, contribute to the positive outlook. The company’s strategic investments in research and development, particularly for new IP and design services, are expected to yield higher growth from late fiscal year 2027 onwards. These factors, combined with the potential for data center royalties to significantly increase their contribution to the revenue mix, underpin Sankar’s Buy rating for ARM Holdings PLC ADR.
According to TipRanks, Sankar is a top 100 analyst with an average return of 31.4% and a 66.25% success rate. Sankar covers the Technology sector, focusing on stocks such as Apple, Micron, and Applied Materials.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $181.00 price target.