Needham Upgrades Arm Holdings to Buy
Needham analyst Charles Shi upgraded Arm Holdings (NASDAQ: ARM) from Hold to Buy with a price target of $200.00.
“Mark Zuckerberg famously said “move fast and break things” in the early days of Facebook.
Interestingly, Arm’s entry into the silicon market via META perfectly epitomizes this motto.
We have been on the sidelines on ARM for 2.5 years and now see a series of their high-stake bets, i.e., raising royalty rates, going into subsystems, and making its own silicon, are working.
These bold moves should disrupt the existing industry landscape (one of the reasons why we were cautious) but are transforming ARM for the better now in a surprising way.
With the rise of agentic AI and the growing role of CPU in AI data centers, we think ARM has become a credible AI play, right around the time when the company has better structured itself to capture greater value from AI.
As such, we are upgrading ARM to Buy and establishing 12-month PT of $200.”
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