ARM (NASDAQ:ARM) Upgraded by Raymond James Financial to Outperform Rating

Raymond James Financial upgraded shares of ARM (NASDAQ:ARM) from a market perform rating to an outperform rating in a report released on Wednesday, Marketbeat.com reports. The firm currently has $166.00 price target on the stock.

A number of other equities research analysts have also recently weighed in on the company. Wells Fargo & Company reduced their price objective on ARM from $160.00 to $150.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. TD Cowen lowered their target price on shares of ARM from $190.00 to $165.00 and set a “buy” rating on the stock in a research report on Thursday, February 5th. Morgan Stanley cut their target price on shares of ARM from $180.00 to $135.00 and set an “overweight” rating on the stock in a report on Friday, January 23rd. UBS Group reduced their price target on shares of ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Finally, KeyCorp reiterated an “overweight” rating on shares of ARM in a research note on Thursday, February 5th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $166.78.

ARM Stock Performance

Shares of ARM stock opened at $157.07 on Wednesday. The stock’s 50-day moving average is $120.72 and its two-hundred day moving average is $134.17. ARM has a 1 year low of $80.00 and a 1 year high of $183.16. The firm has a market cap of $165.95 billion, a price-to-earnings ratio of 209.43, a PEG ratio of 9.31 and a beta of 4.11.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, beating 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 return on equity of 14.01% and a net margin of 17.15%.The business’s quarterly revenue was up 26.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.39 EPS. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, research analysts predict that ARM will post 0.9 EPS for the current year.

Institutional Inflows and Outflows

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

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled the AGI CPU — its first in‑house data‑center processor — and said the product targets “agentic AI” workloads with Meta as a launch customer; management also guided to multi‑billion annual sales from the new silicon effort. Reuters: Arm jumps as new AI chip to drive billions annual revenue
• Positive Sentiment: Company projections and analyst repricing: Arm suggested the new chip could generate roughly $15B in revenue by 2031 (some headlines cited even larger figures), and multiple firms raised price targets or upgraded ratings after the announcement — driving bullish sentiment. Forbes: Arm Shares Surge 18% On $15 Billion AI Chip Sales Forecast
• Positive Sentiment: Options and market momentum: heavy call buying was reported (large unusual call volume), amplifying upside pressure; macro/tech tailwinds (chip optimism, lower VIX) supported a broad tech rally that helped amplify Arm’s move. Fool: Stock Market Today — chip optimism boosts tech
• Neutral Sentiment: Official corporate release: Arm formally announced the “Arm AGI CPU” and the company’s shift from pure IP licensing into selling branded silicon — a structural business change that creates both new revenue upside and new execution responsibilities. BusinessWire: Arm expands compute platform to silicon products
• Neutral Sentiment: Market positioning vs incumbents: some coverage notes Nvidia and other incumbents aren’t necessarily threatened in the near term — Arm’s entry expands choices for hyperscalers but won’t instantly displace entrenched AI GPU/accelerator suppliers. Yahoo: Nvidia Stock Is Rising — Why Arm’s New AI Chip Is Not a Threat
• Negative Sentiment: Execution and margin risk: moving from licensing to building and selling silicon is capital‑intensive and operationally complex; some analysts and commentators flagged uncertainty around Arm’s ability to scale manufacturing, margin impacts, and competitive response from Intel/AMD. Proactive: Arm’s AI chip push lifts shares, but analysts question upside potential

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.