Arm Holdings (ARM) is set to report fiscal second-quarter earnings after the market closes on Wednesday, with analysts sporting mostly bullish ratings on the chip-design company but looking for little price upside.
Of the 12 analysts polled by Visible Alpha, nine have a “buy” or equivalent rating, compared with two maintaining “hold” ratings and one with a “sell.” The consensus price target is $138, less than a dollar above the stock’s Monday close.
Raymond James analyst Srini Pajjuri made a bull case for the company in September, setting a $160 price target for Arm and calling it “well-positioned to benefit from rapid growth of GenAI in the cloud and at the edge.”
Pajjuri said that edge AI—essentially the use of AI on local devices—was “a key catalyst” for Arm’s Armv9 architecture, which is used in the new Apple (AAPL) iPhone 16‘s processor.
On average, Wall Street expects Arm to swing to …