TD Cowen Lowers ARM (NASDAQ:ARM) Price Target to $165.00

ARM (NASDAQ:ARM) had its price objective decreased by stock analysts at TD Cowen from $190.00 to $165.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has a “buy” rating on the stock. TD Cowen’s price objective would suggest a potential upside of 33.39% from the stock’s current price.

Other analysts also recently issued reports about the stock. Oddo Bhf set a $170.00 price target on shares of ARM in a report on Monday, January 5th. Bank of America reiterated a “neutral” rating and issued a $120.00 target price on shares of ARM in a research note on Tuesday, January 13th. The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and decreased their target price for the stock from $160.00 to $120.00 in a research report on Monday, December 15th. KeyCorp reaffirmed an “overweight” rating on shares of ARM in a report on Thursday. Finally, Evercore reduced their price objective on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research report on Thursday. Sixteen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $160.81.

ARM Stock Up 11.6%

Shares of NASDAQ:ARM opened at $123.70 on Thursday. The company has a market cap of $130.69 billion, a price-to-earnings ratio of 164.93, a PEG ratio of 6.64 and a beta of 4.35. The business has a 50 day moving average price of $117.14 and a 200 day moving average price of $138.07. ARM has a twelve month low of $80.00 and a twelve month high of $183.16.

ARM (NASDAQ:ARM) last issued its quarterly 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 return on equity of 14.01% and a net margin of 17.15%.The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the business posted $0.39 EPS. The company’s revenue for the quarter was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Analysts anticipate that ARM will post 0.9 EPS for the current year.

Hedge Funds Weigh In On ARM

A number of hedge funds have recently modified their holdings of the stock. Sustainable Growth Advisers LP boosted its stake in ARM by 116.8% in the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company’s stock valued at $559,171,000 after buying an additional 1,862,626 shares in the last quarter. Capital Research Global Investors acquired a new stake in shares of ARM in the 3rd quarter valued at $243,098,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of ARM by 2,623.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after purchasing an additional 1,610,403 shares during the last quarter. Hyperion Asset Management Ltd bought a new stake in shares of ARM in the 3rd quarter worth about $202,980,000. Finally, Schroder Investment Management Group increased its position in shares of ARM by 41.7% during the 2nd quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock worth $767,611,000 after purchasing an additional 1,396,684 shares in the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

ARM News Summary

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

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.