ARM beat earnings and saw strong demand for AI chips, but shares fell on smartphone worries amid supply concerns. Analysts still raised price targets.
Arm Holdings hit record $1.49B revenue (+20%), driven by chip licenses and AI demand. New AI chips and big partners fuel strong growth.
Analysts upgraded Intel and AMD on strong AI-driven CPU demand, raising targets and boosting shares in premarket trading.
Morgan Stanley is neutral on Arm for now, raising its price target to $150 but warning growth may take time amid market risks.
Analysts are turning bullish on Arm stock. Needham, Barclays, Evercore, Guggenheim, and Citi raise price targets up to $240 as the company bets big on agentic AI and launches its own AGI CPU.
Arm enters the AI chip race with its new 136-core AGI CPU. Meta is the first major buyer as Arm targets $15B annual revenue from chips in 5 years — aiming for $25B total company sales.
