ARM (NASDAQ:ARM) Upgraded by Needham & Company LLC to “Buy” Rating

Needham & Company LLC upgraded shares of ARM (NASDAQ:ARM) from a hold rating to a buy rating in a report issued on Thursday, MarketBeat reports. Needham & Company LLC currently has $200.00 target price on the stock.

ARM has been the topic of a number of other reports. Oddo Bhf set a $170.00 target price on shares of ARM in a report on Monday, January 5th. JPMorgan Chase & Co. cut their price objective on ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. TD Cowen decreased their target price on ARM from $190.00 to $165.00 and set a “buy” rating on the stock in a report on Thursday, February 5th. New Street Research raised ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. Finally, Evercore reduced their target price on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a report on Thursday, February 5th. Nineteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $168.17.

ARM Stock Performance

Shares of ARM stock opened at $154.80 on Thursday. ARM has a 1 year low of $80.00 and a 1 year high of $183.16. The business’s fifty day moving average is $121.71 and its 200-day moving average is $134.31. The stock has a market cap of $163.55 billion, a PE ratio of 206.40, a price-to-earnings-growth ratio of 10.84 and a beta of 4.11.

ARM (NASDAQ:ARM) last announced its quarterly earnings data 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 analyst estimates of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The company’s revenue was up 26.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Equities research analysts predict that ARM will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On ARM

Several institutional investors and hedge funds have recently bought and sold shares of the business. Capital Research Global Investors acquired a new position in shares of ARM in the 3rd quarter valued at about $243,098,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of ARM by 2,623.5% in the fourth 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 in the last quarter. Hyperion Asset Management Ltd acquired a new stake in shares of ARM during the third quarter worth approximately $202,980,000. Schroder Investment Management Group boosted its holdings in shares of ARM by 41.7% during the second 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 during the period. Finally, Employees Provident Fund Board purchased a new position in ARM during the fourth quarter valued at approximately $120,241,000. Hedge funds and other institutional investors 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 (first-ever in-house chip) and gave long-range revenue guidance that repositions the company from licensor to direct silicon seller — a transformational growth narrative. Arm’s New Gambit: Building Chips to Challenge the AI Titans
• Positive Sentiment: Meta signed on as the launch/customer partner for the new CPU, which materially de‑risks commercialization and provides an early scale buyer. Arm jumps 13% in premarket after saying first in-house chip set to generate $15 billion in revenue
• Positive Sentiment: Analysts have moved quickly to upgrade and raise targets (Needham upgraded to Buy with a $200 target; multiple firms raised PTs), signaling higher earnings and valuation expectations if execution succeeds. Arm Stock Upgraded After Move from Blueprints to Silicon. A ‘Credible AI Play’ Is Born.
• Neutral Sentiment: Technical/market metrics show momentum—Relative Strength rating jumped—indicating institutional interest, but that can also amplify volatility after a big gap-up. Arm Holdings Stock Sees Relative Strength Rating Jump To 87
• Neutral Sentiment: Unusually large call-option activity accompanied the rally — bullish interest but also a potential source of short-term gamma-driven moves. (Market commentary summarized across reports.)
• Negative Sentiment: Major outlets and strategists warn execution risk: moving from IP licensing to manufacturing/sales is complex and the stock’s high valuation already prices in substantial success; failure or delays would pressure shares. Arm’s Timing Is Good, but Big Chip Move Now Has to Go Perfectly
• Negative Sentiment: After Wednesday’s surge (big one‑day gains), profit-taking and overbought indicators triggered a pullback today — typical after a rapid re‑rating. Arm jumps as new AI chip to drive billions annual revenue

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.