Chipmaker Qualcomm (NASDAQ:QCOM) and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG)-owned Google is leveraging open-source RISC-V architecture to develop a wearables solution designed for integration with Wear OS by Google. As RISC-V technology competes with Arm Holdings’ (NASDAQ:ARM) processors, the strong backing of RISC-V technology by major tech giants is a sign of worry for ARM shareholders.
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Qualcomm stated that the work has already begun on the RISC-V Snapdragon Wear platform, and it will soon be available for commercial launches. Additionally, Qualcomm intends to bring the RISC-V-powered wearable solution to a global audience, including the U.S.
Back in August, Qualcomm, along with NXP Semiconductors (NASDAQ:NXPI), Bosch, Infineon Technologies (DE:IFX), and Nordic Semiconductors (DE:N0S), invested in a joint venture to accelerate the commercialization of products based on the RISC-V architecture.
With leading semiconductor players coming together to advance the RISC-V ecosystem and hardware development, it’s worth looking at what the Street recommends for ARM stock.
What is the Stock Price Prediction for ARM?
Arm Holdings is a dominant player in the chip design space, with its architecture being the foundation for almost all smartphones. However, the markets for its products are intensely competitive, posing challenges for the company.
Needham analyst Charles Shi initiated coverage on ARM stock with a Hold rating on September 14. Highlighting investors’ feedback on the ARM initiation, Shi said investors already see RISC-V as a viable alternative to Arm Holdings, as top semiconductor companies and Google are backing up the rival technology.
Given the competitive headwinds, Wall Street analysts are cautiously optimistic about Arm stock. With 14 Buy, six Hold, and one Sell recommendations, Arm stock sports a Moderate Buy consensus rating. Further, Arm stock gave up all of its IPO-related gains and is trading in the red. Thus, these analysts’ average price target of $62.32 implies 19.18% upside potential from current levels.
