ARM (NASDAQ:ARM) Raised to Buy at HSBC

ARM (NASDAQ:ARM) was upgraded by investment analysts at HSBC from a “reduce” rating to a “buy” rating in a report released on Friday, Marketbeat.com reports. The firm currently has a $205.00 price objective on the stock, up from their prior price objective of $90.00. HSBC’s target price points to a potential upside of 54.89% from the company’s previous close.

ARM has been the subject of several other reports. JPMorgan Chase & Co. reduced their price target on ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. Royal Bank Of Canada dropped their price objective on ARM from $140.00 to $130.00 and set an “outperform” rating on the stock in a report on Thursday, February 5th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Wednesday, January 21st. Susquehanna raised ARM from a “neutral” rating to a “positive” rating and set a $150.00 target price for the company in a report on Wednesday, January 21st. Finally, New Street Research upgraded ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. Seventeen investment 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. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $162.82.

ARM Stock Up 1.9%

NASDAQ ARM opened at $132.35 on Friday. The firm has a market cap of $139.83 billion, a P/E ratio of 176.47, a price-to-earnings-growth ratio of 9.13 and a beta of 4.11. The company’s 50 day moving average is $118.62 and its 200-day moving average is $134.00. ARM has a 12-month low of $80.00 and a 12-month high of $183.16.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates 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 analyst estimates of $1.23 billion. During the same period in the previous year, the business earned $0.39 EPS. ARM’s revenue was up 26.3% compared to the same quarter last year. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Equities analysts expect that ARM will post 0.9 EPS for the current year.

Hedge Funds Weigh In On ARM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC boosted 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 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 ARM in the fourth quarter valued at approximately $33,000. Finally, FWL Investment Management LLC purchased a new stake in ARM in the second quarter valued at approximately $34,000. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM News Roundup

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

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.