ARM (NASDAQ:ARM) Upgraded at New Street Research

New Street Research upgraded shares of ARM (NASDAQ:ARM) from a neutral rating to a buy rating in a research note released on Thursday morning, MarketBeat.com reports.

ARM has been the subject of several other research reports. Bank of America restated a “neutral” rating and issued a $120.00 price objective on shares of ARM in a report on Tuesday, January 13th. Raymond James Financial started coverage on ARM in a research report on Friday, November 21st. They set a “hold” rating on the stock. Evercore cut their price objective on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a report on Thursday. Mizuho decreased their target price on shares of ARM from $190.00 to $160.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, Morgan Stanley dropped their price target on shares of ARM from $180.00 to $135.00 and set an “overweight” rating on the stock in a research report on Friday, January 23rd. Sixteen research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $160.81.

ARM Stock Up 11.6%

NASDAQ ARM opened at $123.70 on Thursday. The firm’s 50 day moving average is $117.14 and its 200-day moving average is $137.94. The company has a market capitalization of $130.69 billion, a PE ratio of 164.93, a price-to-earnings-growth ratio of 7.41 and a beta of 4.35. ARM has a 12-month low of $80.00 and a 12-month high of $183.16.

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

Hedge Funds Weigh In On ARM

A number of hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its position in shares of ARM by 126.0% during the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after acquiring an additional 97 shares during the period. Grey Fox Wealth Advisors LLC bought a new position in shares of ARM in the third quarter worth $28,000. Huntington National Bank acquired a new position in ARM in the second quarter valued at about $30,000. Navalign LLC acquired a new position in ARM in the fourth quarter valued at about $33,000. Finally, FWL Investment Management LLC bought a new stake in ARM during the second quarter worth about $34,000. Institutional investors own 7.53% of the company’s stock.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat top- and bottom-line estimates; revenue jumped ~26%, supporting the narrative of durable growth and stronger AI-related demand. Guidance for Q4 EPS was given (0.540–0.620), helping investor confidence. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Analysts publicly praised the results and highlighted ARM’s AI potential, which supported intraday buying interest. Arm rallies after analysts praise results, citing AI potential
• Positive Sentiment: CEO Rene Haas emphasized rapid growth in ARM’s data-center business (“exploding”), reinforcing the long-term AI/data-center growth thesis. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Unusually large call-option activity — ~90,892 calls traded (≈+38% vs. average) — indicates speculative bullish positioning that can amplify upward moves in the underlying stock.
• Neutral Sentiment: Multiple brokerages trimmed price targets (JPMorgan, TD Cowen, Wells Fargo, Mizuho, Rosenblatt) but largely retained buy/overweight ratings; the cuts reflect stretched valuation vs. near-term licensing/macro risk while keeping upside cases intact.
• Neutral Sentiment: One shop upgraded ARM to buy (New Street), adding to mixed analyst activity that can support momentum but also shows divergent views on near-term risks.
• Neutral Sentiment: Reported short-interest data in the feed appears anomalous/unclear (shows zero), so it doesn’t provide a reliable contrarian signal today.
• Negative Sentiment: After-hours weakness followed the release as licensing revenue narrowly missed estimates; that headline pressure weighed on sentiment and triggered an early sell-off. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Industry reports warn a memory shortage is constraining smartphone production, which could depress handset-related royalties and weigh on ARM’s near-term licensing growth. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint

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.