ARM (NASDAQ:ARM) Upgraded to “Outperform” at Raymond James Financial

ARM (NASDAQ:ARM) was upgraded by stock analysts at Raymond James Financial from a “market perform” rating to an “outperform” rating in a report released on Wednesday,Benzinga reports. The firm currently has a $166.00 price target on the stock. Raymond James Financial’s price target would indicate a potential upside of 23.00% from the stock’s current price.

A number of other research firms also recently weighed in on ARM. The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and decreased their price objective for the company from $160.00 to $120.00 in a report on Monday, December 15th. TD Cowen cut their target price on ARM from $190.00 to $165.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Jefferies Financial Group set a $170.00 price target on ARM in a research note on Thursday, February 5th. Royal Bank Of Canada lowered their price target on ARM from $140.00 to $130.00 and set an “outperform” rating on the stock in a research report on Thursday, February 5th. Finally, JPMorgan Chase & Co. dropped their price objective on ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. Eighteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, ARM has an average rating of “Moderate Buy” and an average price target of $162.86.

ARM Price Performance

Shares of ARM stock opened at $134.96 on Wednesday. ARM has a 52-week low of $80.00 and a 52-week high of $183.16. The firm has a market capitalization of $142.59 billion, a PE ratio of 179.95, a price-to-earnings-growth ratio of 9.45 and a beta of 4.11. The company’s fifty day moving average price is $119.67 and its two-hundred day moving average price is $134.01.

ARM (NASDAQ:ARM) last issued 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 for the quarter, compared to analyst estimates of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm’s 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. Analysts predict that ARM will post 0.9 earnings per share for the current fiscal year.

Institutional Investors Weigh In On ARM

A number of large investors have recently bought and sold shares of the business. GAMMA Investing LLC raised its position in ARM by 126.0% in the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after purchasing an additional 97 shares during the last quarter. Grey Fox Wealth Advisors LLC bought a new stake in shares of ARM during the third quarter worth $28,000. FWL Investment Management LLC acquired a new stake in shares of ARM in the second quarter valued at $34,000. Mcguire Capital Advisors Inc. bought a new position in shares of ARM in the fourth quarter valued at about $30,000. Finally, Strategic Investment Solutions Inc. IL lifted its position in ARM by 238.1% during the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock worth $40,000 after buying an additional 200 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm announced its first-ever Arm‑designed data‑center CPU, the AGI CPU, with Meta as the debut customer — a direct move into selling chips rather than only licensing designs. This is the core catalyst driving the stock higher. Arm Expands Compute Platform to Silicon Products in Historic Company First
• Positive Sentiment: Management gave a multibillion revenue outlook for the new silicon: various reports cite Arm expecting roughly $15 billion annually from the product line by the early 2030s (some coverage referenced even higher targets). Those numeric projections crystallize a new, sizable revenue opportunity. Arm jumps 13% in premarket after saying first in-house chip set to generate $15 billion in revenue
• Positive Sentiment: Market reaction: multiple outlets report premarket/after‑hours share gains following the announcement — a clear signal that investors view the launch and revenue roadmap as positive near‑term news. Arm jumps as new AI chip to drive billions in annual revenue
• Neutral Sentiment: The product targets “agentic AI” inference workloads (systems that act autonomously for users) rather than chatbot‑style models — a distinct market niche that could command different pricing/performance dynamics. Arm’s first CPU ever will plug into Meta’s AI data centers later this year
• Neutral Sentiment: Industry reaction is mixed: some competitors (e.g., Nvidia) appear to have shrugged off the news so far, suggesting incumbents remain strong in the near term — this tempers the immediate competitive threat. Nvidia Stock Rises. What Arm’s First AI Chip Means for the Market Leader.
• Negative Sentiment: Risks and execution: moving from IP licensing to manufacturing/selling silicon creates potential channel conflict with longtime licensees, requires capital investment and operational execution, and may strain partner relationships. These are meaningful execution and margin risks investors should price in. Arm Holdings, in Break From Past, Will Sell Its Own Computer Chips
• Negative Sentiment: Valuation and uncertainty: Arm already trades at a premium multiple, so failure to scale AGI CPU sales, margin dilution or slower customer adoption would pressure the stock. Investors must weigh upside from the new revenue stream against high expectations. Arm Bets Big On AI Data Centers With First-Ever CPU

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.