ARM, QCOM, KLAC stocks rise despite price target cuts by UBS amid chip stocks’ pullback
Shares of ARM, Qualcomm, and KLA rose despite UBS cutting price targets amid a semiconductor sector pullback. UBS lowered ARM's target by over 20% but kept a 'Buy' rating, while maintaining 'Neutral' ratings for Qualcomm and KLA with modest cuts. Despite the reductions, all three stocks still imply upside from current levels. The moves follow recent pressure on chip stocks due to AI infrastructure spending concerns, though long-term value remains supported by strong demand.
ARM’s stock saw the largest price target cut, though UBS reiterated its 'Buy' rating and retained 'Neutral' ratings for both Qualcomm and KLA.