ARM (NASDAQ:ARM) Shares Gap Up After Analyst Upgrade

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price gapped up prior to trading on Friday after HSBC upgraded the stock from a reduce rating to a buy rating. The stock had previously closed at $129.82, but opened at $136.90. HSBC now has a $205.00 price target on the stock, up from their previous price target of $90.00. ARM shares last traded at $134.7620, with a volume of 3,071,596 shares traded.

A number of other equities research analysts have also weighed in on the stock. Rosenblatt Securities cut their target price on shares of ARM from $180.00 to $175.00 and set a “buy” rating on the stock in a research note on Thursday, February 5th. Bank of America restated a “neutral” rating and set a $120.00 target price on shares of ARM in a report on Tuesday, January 13th. Raymond James Financial started coverage on shares of ARM in a research report on Friday, November 21st. They issued a “hold” rating on the stock. Royal Bank Of Canada lowered their price target on shares of ARM from $140.00 to $130.00 and set an “outperform” rating for the company in a research report on Thursday, February 5th. Finally, Susquehanna raised shares of ARM from a “neutral” rating to a “positive” rating and set a $150.00 price objective on the stock in a research note on Wednesday, January 21st. Seventeen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, ARM presently has an average rating of “Moderate Buy” and a consensus price target of $162.82.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: HSBC upgraded ARM from “reduce” to “buy” and raised its price target sharply to $205, driving renewed enthusiasm that ARM’s royalty and licensing growth from AI chips could be substantially larger than previously modeled.
  Arm Holdings stock surges after HSBC’s buy upgrade to $205
  Arm Stock Jumps on HSBC Upgrade — Sees Massive Upside on AI Chip Growth
  Arm shares jump 7% on HSBC upgrade as AI demand boosts outlook
• Positive Sentiment: Bank of America and other analysts flag a strategic shift: ARM may unveil an in‑house standalone merchant CPU and pursue full‑chiplet designs that expand its addressable market into agentic/AI CPUs — a move that could materially raise long‑term revenue and royalty upside if adopted by hyperscalers.
  Arm Holdings eyes full-chiplet CPUs, but analysts warn near-term headwinds remain
• Positive Sentiment: Independent analyst commentary argues ARM could benefit disproportionately as CPUs (including ARM‑based designs) become central to AI data centers, supporting upside forecasts and higher valuations from multiple research notes.
  Arm’s stock could rocket 50% as Wall Street wakes up to a ‘game-changing’ trend, analyst says
• Neutral Sentiment: Short‑interest data is mixed and noisy: a reported February decline in short interest contrasts with other notes showing odd/zero figures for March — not a clear driver either way but worth monitoring for volatility signals.
  ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Short Interest Down 13.5% in February
• Negative Sentiment: Malaysia’s anti‑corruption agency opened a probe into a roughly $250–279m government deal with ARM, raising regulatory, reputational and government‑contract risk in Southeast Asia; this is a headline risk that could affect sentiment if findings escalate.
  Malaysia Probe Puts Spotlight On Arm Holdings Valuation And Government Deals

Hedge Funds Weigh In On ARM

A number of hedge funds have recently bought and sold shares of ARM. GAMMA Investing LLC increased its stake in 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 purchasing an additional 97 shares in the last quarter. Grey Fox Wealth Advisors LLC bought a new position in shares of ARM in the third quarter worth approximately $28,000. Mcguire Capital Advisors Inc. bought a new position in shares of ARM in the fourth quarter worth approximately $30,000. Navalign LLC purchased a new stake in shares of ARM during the fourth quarter valued at approximately $33,000. Finally, FWL Investment Management LLC bought a new stake in shares of ARM during the second quarter valued at approximately $34,000. Institutional investors own 7.53% of the company’s stock.

ARM Price Performance

The company has a market cap of $139.83 billion, a P/E ratio of 176.47, a P/E/G ratio of 8.96 and a beta of 4.11. The company’s 50-day moving average is $118.62 and its two-hundred day moving average is $133.99.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.02. The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm’s quarterly revenue was up 26.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.39 EPS. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Equities research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

ARM Company Profile

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.