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Loop Capital recently lowered the price target on Arm Holdings plc (NASDAQ:ARM) to $155 from $195 and kept a Buy rating on the shares after the company's Q4 results. Arm architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.
In an investor note, the analyst noted that while revenue and design traction remained intact, the company's guidance was slightly below Street, and Arm was holding off on a FY26 guide while also increasing its operating expense guidance to reflect ongoing growth opportunities.
A robotic arm holding a semiconductor chip, emphasizing the precision and quality of the company's production equipment.
In the latest earnings report, the company reported earnings per share of $0.55, beating market estimates by $0.03. The revenue over the quarter was $1.24 billion, up over 33% compared to the revenue over the same period last year and smashing analyst expectations by $10 million.
While we acknowledge the potential of ARM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ARM and that has 100x upside potential, check out our report about this cheapest AI stock.
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