JPMorgan Bullish on Arm Holdings’ Growth Potential

JPMorgan believes that Arm Holdings’ expansion into lucrative segments of the chip market will drive its revenue in the future. The investment firm has given the semiconductor stock an overweight rating and set a price target of $70 per share. This forecast suggests a potential upside of over 29% from Friday’s closing price of $54.08. Arm Holdings’ stock has already increased by 6% since its highly anticipated initial public offering in September, which valued the company at around $54 billion.

Positioned as a Leader in Chip Development

Analyst Harlan Sur from JPMorgan highlights Arm Holdings’ premier status as a provider of chips for computer architectures. Sur predicts that the company will extend its reach into the automotive and Internet of Things (IoT) sectors. He expects Arm to achieve a compound annual growth rate of over 18% in revenue (40% in earnings per share) over the next three years. This growth will be driven by an increase in intellectual property content, higher royalty rates, market share gains against proprietary compute architectures, and expansion into high-growth segments such as automotive, IoT, and datacenter compute.

Positive Coverage from Deutsche Bank and Goldman Sachs

Arm Holdings has also received buy ratings from other financial institutions, including Deutsche Bank and Goldman Sachs. These endorsements further support the company’s potential for success.

Source: ‘s Michael Bloom