- Arm Holdings (ARM, Financial) plans to venture into the server market with its own branded CPU, signaling a shift from its traditional licensing model.
- Analysts predict a modest upside for ARM Holdings, with a consensus target price suggesting a potential increase.
- Brokerage firms maintain a positive outlook on ARM, with an "Outperform" recommendation.
Arm Holdings (ARM) is reportedly setting its sights on a new frontier by developing a server CPU under its own brand. This move marks a significant departure from its conventional strategy of licensing intellectual property to tech giants like Apple and Nvidia. By crafting its own hardware solutions, Arm is poised to make a direct entry into the competitive server market, showcasing its ambition and strategic evolution.
Wall Street Analysts Forecast
According to data from 30 analysts, the average one-year price target for ARM Holdings PLC (ARM, Financial) stands at $138.14. This projection includes a high estimate of $202.00 and a low estimate of $75.34. With the current price at $132.89, this average target suggests a potential upside of 3.95%. For more in-depth insights, investors can refer to the detailed estimates on the ARM Holdings PLC (ARM) Forecast page.
The consensus recommendation from 38 brokerage firms for ARM Holdings PLC (ARM, Financial) is an average brokerage recommendation of 2.4, indicating an "Outperform" status. The recommendation scale ranges from 1 to 5, where 1 signifies a Strong Buy, and 5 denotes a Sell. This positive rating from brokerage firms reflects confidence in ARM's strategic directions and potential growth in the server CPU market.
