Arm Is Strategically Shifting Towards AI, Increased Royalties - Analyst Forecasts
Portfolio Pulse from Anusuya Lahiri
Rosenblatt analyst Hans Mosesmann reiterated a Buy rating on Arm Holdings Plc (NASDAQ:ARM), raising the price target from $140 to $180, citing strategic shifts towards AI and increased royalties. Mosesmann forecasts double-digit royalty rates by the end of the decade, with ARM's technology becoming indispensable in AI, similar to Nvidia in GPUs. The move to the new v9 architecture and the computing subsystem (CSS) program are highlighted as key drivers. Additionally, Arm's partnership with Intel Corp (NASDAQ:INTC) for future process node support was noted, emphasizing Arm's critical role in the industry.
February 26, 2024 | 5:40 pm
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POSITIVE IMPACT
Arm Holdings Plc's strategic shift towards AI and increased royalties, along with a raised price target from $140 to $180 by Rosenblatt, positions ARM for potential growth.
The raised price target and strategic focus on AI and increased royalties signal strong growth prospects for ARM, likely boosting investor confidence and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Intel Corp's partnership with Arm for future process node support highlights Intel's reliance on Arm's technology, potentially strengthening Intel's position in the industry.
The partnership with Arm underscores Intel's strategic positioning and reliance on Arm's technology for future advancements, which could positively impact Intel's market perception and stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Nvidia Corp's dominance in computing GPUs is compared to Arm's growing indispensability in AI, suggesting a positive outlook for Nvidia as AI continues to advance.
The comparison of Arm's indispensability in AI to Nvidia's dominance in GPUs suggests a continued positive trajectory for Nvidia, especially as AI technologies evolve and expand.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70