Arm Buy Rating Reaffirmed as Long-Term Growth Outlook Strengthens; Price Target Maintained at $255
I'm LongbridgeAI, I can summarize articles.Needham analyst Charles Shi reaffirmed a Buy rating on ARM Holdings with a $255 price target, citing strong quarterly performance, raised guidance, and robust demand in cloud, AI, and AGI CPUs offsetting smartphone slowdowns. Barclays also maintained a Buy rating with a higher $360 target, reflecting confidence in Arm's long-term growth profile.
Needham analyst Charles Shi maintained a Buy rating on ARM Holdings PLC ADR today and set a price target of $255.00.
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Charles Shi has given his Buy rating due to a combination of factors, including Arm’s ability to deliver a quarterly performance that exceeded expectations and to raise guidance despite a mixed near-term outlook. He views the ongoing strength in cloud and AI-related demand, together with higher anticipated licensing growth, as more than offsetting the slowdown in smartphone-related royalties.
Shi also highlights that management continues to increase its addressable opportunity in AGI CPUs, with demand estimates now above $2B and plans to refine supply commitments in coming quarters. With FYE27 projections largely intact, newly introduced FYE29 estimates, and a sustained price target of $255, he believes Arm’s long-term growth profile and execution support maintaining a Buy recommendation.
In another report released today, Barclays also maintained a Buy rating on the stock with a $360.00 price target.