Arm Holdings PLC (NASDAQ: ARM) has been in a downtrend since its debut on Nasdaq last month but a KeyBanc analyst is convinced that the worst is now behind this stock.
Arm stock could return to $65John Vinh assumed coverage of the British semiconductor behemoth on Wednesday with an “overweight” rating and announced a price target of $65 that suggests a 26% upside from here.
The analyst expects Arm stock to benefit as the world continues to rely even more on its IP in the coming months and years.
ARM stands to benefit as computing requirements across mobile, data centre, auto, and IoT become increasingly more demanding and complex.
Arm Holdings is slated to report its second-quarter financial results on November 8th. Consensus is for it to earn 26 cents a share in Q2.
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John Vinh is convinced that the chip design company will gain share in networking, data centre, and the automotive space moving forward.
Arm Holdings had a market share of 10% only in cloud infrastructure last year that will likely climb all the way up to 28% by 2025 while its share in the auto sector will hit a whopping 78% by 2031, he added.
The KeyBanc analyst is constructive on the Nasdaq-listed firm for the power efficiency of its products as well as their customisation abilities.
Lastly, he is convinced that the company’s latest generation v9 processor will lift royalty rates from 1.7% in 2023 to 2.5% in 2026. Arm stock is currently down 20% versus its debut.
Watch here: https://www.youtube.com/embed/mi6TwG3lzSk?feature=oembedThe post Arm stock price forecast: KeyBanc sees a 26% upside appeared first on Invezz.
