ARM (NASDAQ:ARM) Upgraded at HSBC

HSBC upgraded shares of ARM (NASDAQ:ARM) from a reduce rating to a buy rating in a report issued on Friday morning, Marketbeat reports. The firm currently has $205.00 target price on the stock, up from their prior target price of $90.00.

Several other brokerages have also recently weighed in on ARM. Susquehanna raised ARM from a “neutral” rating to a “positive” rating and set a $150.00 price target for the company in a research note on Wednesday, January 21st. Benchmark reaffirmed a “hold” rating on shares of ARM in a research note on Thursday, February 5th. Citigroup cut ARM from a “buy” rating to a “hold” rating in a report on Tuesday, January 13th. Evercore decreased their target price on shares of ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research report on Thursday, February 5th. Finally, Rosenblatt Securities dropped their price target on shares of ARM from $180.00 to $175.00 and set a “buy” rating on the stock in a research report on Thursday, February 5th. Seventeen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $162.82.

ARM Stock Performance

Shares of NASDAQ:ARM opened at $132.35 on Friday. ARM has a 52 week low of $80.00 and a 52 week high of $183.16. The firm has a market cap of $139.83 billion, a PE ratio of 176.47, a price-to-earnings-growth ratio of 9.13 and a beta of 4.10. The firm’s fifty day moving average is $118.62 and its 200-day moving average is $134.02.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.ARM’s quarterly revenue was up 26.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Sell-side analysts forecast that ARM will post 0.9 EPS for the current year.

Institutional Investors Weigh In On ARM

Several institutional investors and hedge funds have recently made changes to their positions in ARM. Schroder Investment Management Group increased its holdings in ARM by 41.7% in the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock worth $767,611,000 after purchasing an additional 1,396,684 shares in the last quarter. Morgan Stanley boosted its holdings in shares of ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after buying an additional 45,314 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of ARM by 36.9% during the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after buying an additional 654,727 shares in the last quarter. Coatue Management LLC grew its position in shares of ARM by 1.8% during the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after buying an additional 40,174 shares during the period. Finally, Wellington Management Group LLP grew its position in shares of ARM by 41.6% during the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after buying an additional 631,576 shares during the period. Institutional investors own 7.53% of the company’s stock.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: HSBC upgraded ARM from “reduce” to “buy” and raised its price target sharply to $205, driving renewed enthusiasm that ARM’s royalty and licensing growth from AI chips could be substantially larger than previously modeled.
  Arm Holdings stock surges after HSBC’s buy upgrade to $205
  Arm Stock Jumps on HSBC Upgrade — Sees Massive Upside on AI Chip Growth
  Arm shares jump 7% on HSBC upgrade as AI demand boosts outlook
• Positive Sentiment: Bank of America and other analysts flag a strategic shift: ARM may unveil an in‑house standalone merchant CPU and pursue full‑chiplet designs that expand its addressable market into agentic/AI CPUs — a move that could materially raise long‑term revenue and royalty upside if adopted by hyperscalers.
  Arm Holdings eyes full-chiplet CPUs, but analysts warn near-term headwinds remain
• Positive Sentiment: Independent analyst commentary argues ARM could benefit disproportionately as CPUs (including ARM‑based designs) become central to AI data centers, supporting upside forecasts and higher valuations from multiple research notes.
  Arm’s stock could rocket 50% as Wall Street wakes up to a ‘game-changing’ trend, analyst says
• Neutral Sentiment: Short‑interest data is mixed and noisy: a reported February decline in short interest contrasts with other notes showing odd/zero figures for March — not a clear driver either way but worth monitoring for volatility signals.
  ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Short Interest Down 13.5% in February
• Negative Sentiment: Malaysia’s anti‑corruption agency opened a probe into a roughly $250–279m government deal with ARM, raising regulatory, reputational and government‑contract risk in Southeast Asia; this is a headline risk that could affect sentiment if findings escalate.
  Malaysia Probe Puts Spotlight On Arm Holdings Valuation And Government Deals

ARM Company Profile

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.