ARM (NASDAQ:ARM) Stock Rating Upgraded by Raymond James Financial

ARM (NASDAQ:ARM) was upgraded by research analysts at Raymond James Financial from a “market perform” rating to an “outperform” rating in a report issued on Wednesday,Benzinga reports. The firm currently has a $166.00 price target on the stock. Raymond James Financial’s target price indicates a potential upside of 23.00% from the stock’s previous close.

Other research analysts have also recently issued reports about the stock. Evercore decreased their price objective on shares of ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a report on Thursday, February 5th. Susquehanna upgraded ARM from a “neutral” rating to a “positive” rating and set a $150.00 target price for the company in a research report on Wednesday, January 21st. New Street Research raised ARM from a “neutral” rating to a “buy” rating in a research note on Thursday, February 5th. Royal Bank Of Canada lowered their price target on ARM from $140.00 to $130.00 and set an “outperform” rating on the stock in a research report on Thursday, February 5th. Finally, Oddo Bhf set a $170.00 price objective on ARM in a research note on Monday, January 5th. Eighteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, ARM presently has an average rating of “Moderate Buy” and an average target price of $162.86.

ARM Stock Performance

Shares of ARM opened at $134.96 on Wednesday. ARM has a one year low of $80.00 and a one year high of $183.16. The stock’s fifty day moving average is $119.67 and its 200-day moving average is $134.01. The firm has a market capitalization of $142.59 billion, a price-to-earnings ratio of 179.95, a price-to-earnings-growth ratio of 9.45 and a beta of 4.11.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.02. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company’s quarterly revenue was up 26.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Analysts forecast that ARM will post 0.9 EPS for the current fiscal year.

Institutional Trading of ARM

Hedge funds have recently bought and sold shares of the company. Compound Planning Inc. lifted its stake in shares of ARM by 4.6% in the third quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock valued at $222,000 after buying an additional 69 shares during the period. Ritholtz Wealth Management increased its stake in ARM by 3.0% during the third quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock valued at $345,000 after acquiring an additional 70 shares during the period. Rathbones Group PLC raised its holdings in ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after acquiring an additional 70 shares in the last quarter. Nwam LLC raised its holdings in ARM by 4.3% in the 3rd quarter. Nwam LLC now owns 1,711 shares of the company’s stock valued at $242,000 after acquiring an additional 71 shares in the last quarter. Finally, Kovack Advisors Inc. lifted its position in shares of ARM by 2.0% in the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock worth $510,000 after acquiring an additional 72 shares during the period. 7.53% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm announced its first-ever Arm?designed data?center CPU, the AGI CPU, with Meta as the debut customer — a direct move into selling chips rather than only licensing designs. This is the core catalyst driving the stock higher. Arm Expands Compute Platform to Silicon Products in Historic Company First
• Positive Sentiment: Management gave a multibillion revenue outlook for the new silicon: various reports cite Arm expecting roughly $15 billion annually from the product line by the early 2030s (some coverage referenced even higher targets). Those numeric projections crystallize a new, sizable revenue opportunity. Arm jumps 13% in premarket after saying first in-house chip set to generate $15 billion in revenue
• Positive Sentiment: Market reaction: multiple outlets report premarket/after?hours share gains following the announcement — a clear signal that investors view the launch and revenue roadmap as positive near?term news. Arm jumps as new AI chip to drive billions in annual revenue
• Neutral Sentiment: The product targets “agentic AI” inference workloads (systems that act autonomously for users) rather than chatbot?style models — a distinct market niche that could command different pricing/performance dynamics. Arm’s first CPU ever will plug into Meta’s AI data centers later this year
• Neutral Sentiment: Industry reaction is mixed: some competitors (e.g., Nvidia) appear to have shrugged off the news so far, suggesting incumbents remain strong in the near term — this tempers the immediate competitive threat. Nvidia Stock Rises. What Arm’s First AI Chip Means for the Market Leader.
• Negative Sentiment: Risks and execution: moving from IP licensing to manufacturing/selling silicon creates potential channel conflict with longtime licensees, requires capital investment and operational execution, and may strain partner relationships. These are meaningful execution and margin risks investors should price in. Arm Holdings, in Break From Past, Will Sell Its Own Computer Chips
• Negative Sentiment: Valuation and uncertainty: Arm already trades at a premium multiple, so failure to scale AGI CPU sales, margin dilution or slower customer adoption would pressure the stock. Investors must weigh upside from the new revenue stream against high expectations. Arm Bets Big On AI Data Centers With First-Ever CPU

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.