Arm price target raised to $135 from $120 at KeyBanc

KeyBanc raised the firm’s price target on Arm (ARM) to $135 from $120 and keeps an Overweight rating on the shares following quarterly supply chain findings. The firm notes positive implications for Arm as it continues to see increasing traction and proliferation of ARM across the semiconductor ecosystem. More specifically, KeyBanc would highlight expectations that Nvidia’s (NVDA) GB200 super chip is expected to become mainstream next year should meaningfully boost the adoption of ARM CPU cores in data centers; and while early days, it was pleasantly surprised by the positive feedback from customers such as Lenovo (LNVGY) regarding the outlook for Arm-based and AI PCs, where it expects Arm to benefit despite some pullback in Microsoft’s (MSFT) launch plans this year.