Analyzing Analyst Views on ARM Holdings Stock: A Comprehensive Review (12 Ratings)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 09 2025
0mins
Should l Buy ARM?
Source: Benzinga
Analyst Ratings Overview: Over the past three months, 12 analysts have provided varied ratings for ARM Holdings, with a total of 4 bullish, 8 somewhat bullish, and no bearish ratings. The average 12-month price target has increased to $179.42, up from $162.45.
Recent Analyst Actions: Analysts have made several adjustments to their ratings and price targets, with notable changes including Morgan Stanley lowering its target to $171.00 and Evercore ISI Group raising its target to $178.00.
Financial Performance Insights: ARM Holdings has shown a revenue growth rate of 12.14% as of June 30, 2025, but its return on equity (1.88%) and return on assets (1.42%) are below industry standards, indicating challenges in capital and asset utilization.
Market Position and Strategy: ARM Holdings, a key player in the smartphone CPU architecture market, operates with a conservative financial approach, reflected in its low debt-to-equity ratio of 0.06, while licensing its technology to major clients like Apple and Qualcomm.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 122.190
Low
120.00
Averages
160.58
High
201.00
Current: 122.190
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is engaged in operating a global computing platform. It architects, develops, and licenses high-performance and energy-efficient Arm compute platforms. The Company’s principal operations and activities are the licensing, marketing, research and development of central processing unit (CPU) design intellectual property (IP), graphics processors, system IP, market optimized platform IP, and associated software, tools and other related services. Its complementary products include GPU and NPU accelerators, interconnect, and others. Its primary product offerings are CPU products that address diverse performance, power, and cost requirements. It offers a family of GPU and NPU products providing efficient computing acceleration and an optimal visual experience across a wide range of devices. Its CPU, GPU, and System IP products integrated into a foundational compute platform optimized for a specific end market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Unique Business Model: Unlike Intel and Nvidia, Arm generates most of its revenue from licensing fees and royalties, with over half of its revenue coming from royalties recently, setting a solid foundation for future income growth.
- Deepening Client Relationships: Companies like Amazon, Google, and Apple are increasingly relying on Arm's designs, particularly with Amazon's Graviton 5 processor, which is expected to significantly boost Arm's royalty revenue in the coming years.
- Future Growth Expectations: While analysts project only a 7% revenue growth for fiscal 2026, they anticipate a more than 23% revenue increase in the following year, indicating Arm's potential for recovery in the AI market.
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- Strong Financial Performance: In Q4, TSMC reported revenue of $33.7 billion, a 26% year-over-year increase, with earnings per share rising 35% to $3.14, while gross and operating margins improved to 59.9% and 50.8%, respectively, indicating enhanced profitability during expansion.
- Future Growth Expectations: Management forecasts first-quarter revenue of $35.2 billion, representing a 38% year-over-year growth, suggesting that the company will continue to thrive amid rising demand for high-end semiconductors.
- Optimistic Industry Outlook: Annual sales of high-end semiconductors are projected to approach $1 trillion by 2026, positioning TSMC to benefit from this trend, with analysts predicting revenues of $193.9 billion and $232.8 billion in 2027 and 2028, respectively.
See More
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- Inflation Data Impact: The US January CPI rose 2.4% year-over-year, below the expected 2.5%, which may prompt the Fed to continue cutting rates, with the 10-year T-note yield falling to 4.05%, providing support for the market.
- Earnings Performance: Over two-thirds of S&P 500 companies have reported earnings, with 76% exceeding expectations, and Q4 earnings growth is projected at 8.4%, demonstrating corporate resilience and restoring market confidence.
- Market Sentiment Fluctuations: Despite the overall market rise, concerns over AI persist, putting pressure on certain stocks, particularly in tech and logistics, reflecting investor caution regarding future economic prospects.
See More
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- Significant Returns: SoftBank's Vision Fund reported a $2.4 billion gain in the December quarter, primarily driven by the appreciation of its OpenAI investment, effectively offsetting losses from other ventures and demonstrating its strategic foresight in the AI sector.
- Core Investment Strategy: With approximately $40 billion invested in OpenAI, SoftBank showcases its strong confidence in the future of AI technology, indicating a strategic intent to position itself at the forefront of this rapidly evolving field.
- Diversified Portfolio: Beyond OpenAI, SoftBank's investments span various sectors, including chip designer Arm, robotics, and driverless cars, further enhancing its influence within the technology industry and showcasing its commitment to innovation.
- Stock Price Surge: Following robust results from its telecommunications unit and a rally in Arm's stock price, SoftBank's shares have surged this week, reflecting market optimism regarding its investment strategy and recognition of its growth potential.
See More
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- Core Investment Strategy: With approximately $40 billion invested in OpenAI, SoftBank aims to position itself at the forefront of AI technology development, reflecting its strong confidence and long-term commitment to the burgeoning AI market.
- Diversified Investment Approach: In addition to OpenAI, SoftBank's investments extend to chip designer Arm and various sectors including robotics and autonomous vehicles, showcasing its broad positioning and foresight within the tech industry.
- Stock Price Surge: Following strong results from its telecommunications unit and a rally in Arm's stock price, SoftBank's shares have surged this week, indicating positive market sentiment and confidence in its investment portfolio.
See More
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- Rising Bond Yields: Following the robust payroll report, the 10-year Treasury yield rose by 4 basis points to 4.18%, with market expectations for a Fed rate cut next month dropping from 23% to 6%, reflecting investor caution regarding future monetary policy.
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