Arm Holdings (ARM) PT Raised to $180 at Loop Capital

Loop Capital analyst Ananda Baruah raised the price target on Arm Holdings (NASDAQ: ARM) to $180.00 (from $130.00) while maintaining a Buy rating.

The analyst commented: "We are maintaining our Buy and raising our PT to $180 from $130 after ARM reported Sep Q EPS on 11/7. Our biggest takeaways is that ARM is going to continue to have multifaceted pathways increasing momentum the next few years in Smartphones (30% - 40% of revenue), Data Center (moving to 10% - 15% of revenue) and very potentially PCs (small to potentially material). Smartphones are instructive as ARM is well positioned to continue to drive strong growth despite softening Android and iPhone units (CQ4 24 Smartphone Mid-Quarter Update: Momentum Shifts Downward). On smartphones Royalties (tied to units shipped) grew 40% YoY, 10x stronger than industry units, due to both higher content attach and higher royalty rates (our general thesis). In Data Center we anticipate a real uptick occurs moving through CY2025 as Blackwell really gets underway and NVDA’s ARM based Grace CPU (attached to the Blackwell GPU) really begins to gain steam. To that end, we believe NVDA could ship ~2.0M Blackwell GPU’s in CY2025 (out of a total of Data Center 6.5M GPUs) and say 4.0M in CY2026. Also, of note we believe that ARM based Hyperscale silicon remains “constrained”, as TSMC has a limit on what they can provide. Our work suggests TSMC can free up more wafer capacity through CY2026 and heading into CY2027… which would provide another leg of growth for ARM."

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