What's Going On With Chipmaker Arm Holdings Stock?

Arm Holdings Plc ARM shares are trading higher Tuesday amid strength in chip stocks. 

What To Know:

Arm shares have gained more than 50% in the last month as artificial intelligence moves to smartphones. The ARM (Acorn RISC Machine) architecture is used in 99% of the world’s smartphone CPU cores. 

Apple, Inc. AAPL, one of Arm's major customers, announced robust AI features coming to new iPhone models and iOS updates at its Worldwide Developers Conference last week. Arm shares rose 14% last week and the buzz from Apple's new AI features contributed to the move. 

Arm is set to join the Nasdaq 100 Index beginning June 24, and B of A Securities maintained its Buy rating and raised the price target on Arm from $150 to $180 Monday.

According to data from Benzinga Pro, Arm shares are trading well-above the stock’s 50-day moving average of $118.15 and reached a new 52-week high of $170.35 on Tuesday. 

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ARM Stock Prediction 2024:

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Arm Holdings have an average 1-year price target of $130.82, representing an expected downside of 22.37%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 1 analysts have bearish recommendations on Arm Holdings, while 8 analysts have bullish ratings. The street high price target from B of A Securities is $180, while the street low from Susquehanna is $85.

ARM Price Action: According to Benzinga Pro, Arm Holdings shares are up 7.88% at $172.93 at the time of publication Tuesday.

Image: Courtesy of Arm Holdings, Plc