From Nasdaq: 2024-07-26 12:20:37

British chip designer Arm Holdings plc (ARM) has seen its shares surge 25% on its public trading debut last September. Arm is making significant strides in the AI landscape, with major industry players like AMD, Apple, Nvidia, and Qualcomm relying on its innovative chip designs.

At Computex 2024, Arm made headlines with its forecast of reaching 100 billion AI-ready devices by next year. The company was swiftly included in the Nasdaq-100 Index just 10 months after its IPO. Despite a strong performance with shares up over 90% YTD, analysts remain optimistic about the stock’s growth trajectory.

Arm Holdings, based in the UK, is known for pioneering power-efficient CPU designs and driving smart, AI-powered experiences. The company has a strong market cap of around $156.3 billion and its stock has surged more than 96% this year, outperforming major indices. Arm’s technology spans from smartphones to data centers, making it a key player in the tech industry.

Arm’s fiscal Q4 earnings beat expectations with total revenue reaching $928 million, a 46.6% increase year-over-year. Licensing revenue soared 60% fueled by new agreements, while royalty revenue surged 37% driven by high-margin chips. However, its fiscal 2025 guidance fell short, leading to a post-earnings pullback.

Morgan Stanley recently upgraded Arm from “Equal-Weight” to “Overweight” with a new price target of $190, citing a bullish outlook on Arm’s growth potential. Analysts expect Arm to thrive as AI technology shifts to edge computing, embedded in consumer devices. The stock has a consensus “Moderate Buy” rating with a potential 29.5% upside based on Morgan Stanley’s price target.



Read more at Nasdaq: Up 96% YTD, Here’s Why One Analyst Says Arm Holding Can Keep Rising