Arm upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Arm to Overweight from Equal Weight with a price target of $190, up from $107. The firm says Arm shares offer a “bunch of options” on the emerging edge artificial intelligence space with potential for upside through custom silicon, new designs and extensions. Arm’s power efficient compute architecture, “huge” developer community and breadth of offering gives it centrality within edge AI, the analyst tells investors in a research note. Morgan Stanley believes the company’s smartphone royalties can grow to $1.87B by fiscal 2027, or 37% annually, driven in part by a strong iPhone upgrade cycle.