J.P. Morgan analyst Harlan Sur maintained a Buy rating on ARM Holdings PLC ADR (ARM – Research Report) today and set a price target of $150.00.
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Harlan Sur’s rating is based on ARM Holdings PLC’s strong performance in the semiconductor industry, particularly in licensing and royalty revenues, which have shown significant growth. The company’s v9 penetration has increased, indicating rapid adoption of its compute platforms across various sectors, including mobile, automotive, and industrial segments. Despite a slight miss in revenue guidance for the upcoming quarter, the overall year-over-year growth remains robust, particularly in mobile and infrastructure/cloud sectors.
Furthermore, ARM’s strategic focus on system-level, software, and AI initiatives positions it well for future differentiation in product performance. The move by major customers to custom ARM cores suggests potential for better performance and economic benefits, even if royalty rates remain unchanged. Harlan Sur acknowledges the challenges posed by trade and tariff uncertainties but maintains a positive outlook due to ARM’s leadership in semiconductor architecture and its ability to meet the growing demand for high-performance computing solutions.
In another report released today, Citi also maintained a Buy rating on the stock with a $170.00 price target.