Arm Holdings plc (NASDAQ:ARM) is among the AI Shares Analysts Are Monitoring Intently. On July 21, Wells Fargo reiterated its score on the inventory as “Chubby” and raised its value goal to $175 per share from $145. The agency is assured about Arm’s potential to capitalize on the rising alternatives within the AI sector.
Though the agency is optimistic about Arm’s position within the rising AI alternative, it additionally stays cautious about Q1 2026 EPS as a result of latest outperformance. It additionally stays centered on AI DC-driven 2026 royalty income upside.
In line with latest knowledge, Arm-based server CPU shipments grew 104% year-over-year within the first calendar quarter of 2025. Furthermore, tariff uncertainty did result in a scarcity of formal fiscal 2026 steerage, however Arm famous earlier that royalty income would develop within the high-teens to low-twenties share vary year-over-year.
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The agency is of the view that there may very well be a modest enhance within the upcoming earnings report scheduled for July 3. It additionally anticipates Arm to take care of above-target annual contract worth and licensing income development of an estimated 20% year-over-year. This will probably be backed by booming license demand tied to AI computing wants.
“Whereas we stay constructive on Arm’s LT positioning to profit from rising AI oppys & increase our PT to $175, we’re cautious into F1Q26 EPS given latest outperf.”
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software program design firm that designs and manufactures semiconductor expertise and different associated merchandise.
Whereas we acknowledge the potential of ARM as an funding, we consider sure AI shares provide larger upside potential and carry much less draw back danger. If you happen to’re searching for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
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Disclosure: None.
