SoftBank's Stock Decline: Shares of Japan's SoftBank Group fell over 8% amid concerns over high valuations in the AI sector, following a previous gain of nearly 3% and a significant drop of 10% earlier in the week.
Broader Market Impact: Other Japanese tech stocks also experienced declines, with notable drops in semiconductor companies like Advantest and Renesas Electronics, reflecting a wider trend in the tech industry.
U.S. AI Stocks Performance: The downturn in SoftBank's shares coincided with a decline in AI-related stocks in the U.S., where companies like Qualcomm and AMD reported significant losses despite previous strong performances.
Market Volatility: The overall market remains volatile, with ongoing concerns about the sustainability of AI stock valuations prompting investor caution.
Wall Street analysts forecast ARM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARM is 173.44 USD with a low forecast of 120.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
Wall Street analysts forecast ARM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARM is 173.44 USD with a low forecast of 120.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Buy
4 Hold
2 Sell
Moderate Buy
Current: 119.200
Low
120.00
Averages
173.44
High
215.00
Current: 119.200
Low
120.00
Averages
173.44
High
215.00
Susquehanna
Neutral -> Positive
upgrade
$150
2026-01-21
New
Reason
Susquehanna
Price Target
$150
AI Analysis
2026-01-21
New
upgrade
Neutral -> Positive
Reason
As previously reported, Susquehanna upgraded Arm to Positive from Neutral with an unchanged price target of $150. Recent sell-side competitor downgrades and the significant underperformance of the stock offer "an excellent setup," the analyst tells investors. Investor worries about the effects of higher memory prices on the mobile and PC markets have pressured shares, but the firm views this selloff "opportunistically" as it contrasts well-known market weakness with the potential of two important, data center-related and significant "company-changing" initiatives, namely the development of an AI XPU ASIC and a custom server CPU.
Susquehanna
Neutral -> Positive
upgrade
$150
2026-01-21
New
Reason
Susquehanna
Price Target
$150
2026-01-21
New
upgrade
Neutral -> Positive
Reason
Susquehanna upgraded Arm to Positive from Neutral with a $150 price target.
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Oddo BHF
Neutral -> Outperform
upgrade
$170
2026-01-05
Reason
Oddo BHF
Price Target
$170
2026-01-05
upgrade
Neutral -> Outperform
Reason
Oddo BHF upgraded Arm to Outperform from Neutral with a $170 price target.
BofA
Buy
downgrade
$205 -> $145
2025-12-16
Reason
BofA
Price Target
$205 -> $145
2025-12-16
downgrade
Buy
Reason
BofA lowered the firm's price target on Arm to $145 from $205 and keeps a Buy rating on the shares. The firm reiterates a Buy rating on ARM given continued smartphone and data center v9/CSS adoption and content expansion, but lowers its price target given increasing SoftBank contribution and dependence to meet its near-term growth outlook and limited visibility into the new CPU chipset/silicon business.
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.
