ARM (NASDAQ:ARM) Stock Price Expected to Rise, Guggenheim Analyst Says

ARM (NASDAQ:ARM) had its price objective upped by research analysts at Guggenheim from $201.00 to $240.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Guggenheim’s price target would indicate a potential upside of 77.83% from the company’s previous close.

Several other research firms have also weighed in on ARM. TD Cowen reduced their price objective on ARM from $190.00 to $165.00 and set a “buy” rating on the stock in a research note on Thursday, February 5th. Benchmark reissued a “hold” rating on shares of ARM in a research report on Thursday, February 5th. The Goldman Sachs Group cut shares of ARM from a “neutral” rating to a “sell” rating and reduced their price target for the company from $160.00 to $120.00 in a research report on Monday, December 15th. Bank of America reiterated a “neutral” rating and set a $120.00 price objective on shares of ARM in a research note on Tuesday, January 13th. Finally, New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. Eighteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $165.27.

ARM Price Performance

NASDAQ ARM opened at $134.96 on Wednesday. The company has a market cap of $142.59 billion, a P/E ratio of 179.95, a P/E/G ratio of 9.45 and a beta of 4.11. ARM has a 12 month low of $80.00 and a 12 month high of $183.16. The company has a 50-day moving average of $119.67 and a 200-day moving average of $134.01.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same period last year, the company earned $0.39 earnings per share. The company’s quarterly revenue was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, equities research analysts anticipate that ARM will post 0.9 EPS for the current year.

Hedge Funds Weigh In On ARM

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Compound Planning Inc. raised its stake in shares of ARM by 4.6% during the third quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock valued at $222,000 after purchasing an additional 69 shares during the period. Ritholtz Wealth Management boosted its stake in shares of ARM by 3.0% in the third quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock valued at $345,000 after purchasing an additional 70 shares during the period. Rathbones Group PLC grew its holdings in ARM by 0.7% during the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after purchasing an additional 70 shares in the last quarter. Nwam LLC increased its stake in ARM by 4.3% during the 3rd quarter. Nwam LLC now owns 1,711 shares of the company’s stock worth $242,000 after buying an additional 71 shares during the period. Finally, Kovack Advisors Inc. increased its stake in ARM by 2.0% during the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock worth $510,000 after buying an additional 72 shares during the period. 7.53% of the stock is owned by institutional investors and hedge funds.

More ARM News

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.