ARM Holdings (ARM) stays on the Analyst Radar as AI Demand promotes fresh price targets
ARM Holdings PLC (NASDAQ:arm) is one of AI Stock Analysts are closely tracking. On July 21, Wells Fargo repeatedly rated its stock as “overweight,” increasing its price target to $175 per share. The company is confident about ARM’s potential to exploit growth opportunities in the AI sector.
The company is optimistic about ARM’s role in new AI opportunities, but due to recent outperformance, it is also cautious about its first quarter 2026 EPS. It also focuses on 2026 royalty revenues led by AI DC.
Recent data shows that ARM-based server CPU shipments increased 104% year-on-year in the first calendar quarter of 2025. Furthermore, tariff uncertainty led to a lack of guidance for formal accounting 2026, but ARM noted early on that royal revenues would increase in older people year-on-year.
The glasses-wearing financial analyst leaned over a computer reviewing investment data.
The company believes its future revenue report, scheduled for July 3, could see a slight increase. We also expect to maintain an annual contract value above the target and license revenue growth of an estimated 20% year-over-year. This is supported by boom license demands related to AI computing needs.
“We will remain positive about ARM’s LT positioning to benefit from the emerging AI Oppys and raise the PT to $175, but will be cautious about the F1Q26 EPS considering the recent OutPerf.”
ARM Holdings PLC (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products.
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