KeyBanc raises target on Arm Holdings plc (ARM) As Earnings Impress

Arm Holdings plc (NASDAQ:ARM) is among the most profitable semiconductor stocks to buy. On November 6, analysts at KeyBanc reiterated an ‘Overweight’ rating on Arm Holdings plc (NASDAQ:ARM), while increasing the price target to $200 from $190, implying a potential upside of nearly 26%. This optimism follows the company’s robust second-quarter results, which demonstrated better-than-expected performance in both its royalty and licensing segments.

Royalty growth is primarily attributed to smartphones, as Arm Holdings plc (NASDAQ:ARM) benefited from increased CSS (Compute Subsystem) shipments and higher Armv9 shipments, following the start of Qualcomm’s supply of its upgraded application processors. KeyBanc notes revenue from data centers impressively doubled YoY. Similarly, automotive and IoT businesses also showcased progress, thus contributing to the raised guidance.Jim Cramer Says Oracle (ORCL) Has A Culture Of Winning

The investment firm is confident regarding the company’s position across its key markets. In the second quarter, Arm Holdings plc (NASDAQ:ARM) delivered $1.14 billion in revenue, highlighting a 34% YoY increase. Reinforcing this positive trend, management now anticipates revenue growth of about 25% YoY, royalties over 20% YoY, and licensing revenue between 25% and 30%.

Arm Holdings plc (NASDAQ:ARM) is a U.K.-based company that engages in central processing unit (CPU) products and associated technologies. Incorporated in 1990, the company offers its solutions to semiconductor companies and original equipment manufacturers.

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