Wells Fargo analyst Joseph Quatrochi has maintained their bullish stance on ARM stock, giving a Buy rating on April 22.
Joseph Quatrochi has given his Buy rating due to a combination of factors including ARM Holdings’ strategic positioning and growth potential in key markets. Despite the recent decline in stock price, Quatrochi notes that ARM’s initial revenue guidance for fiscal year 2026, particularly in royalty revenue, is expected to be a significant driver of share performance. Although there are concerns about tariff impacts on consumer electronics, ARM’s substantial market share in mobile applications and consumer electronics provides a strong foundation.
Additionally, ARM’s expansion in the AI sector, particularly through partnerships with companies like NVIDIA, Microsoft, and Google, is seen as a promising growth avenue. The adoption of ARM’s v9 architecture and the increase in CSS licensees, including NVIDIA’s new projects, further support the potential for revenue growth. These factors, combined with a revised price target of $150, underpin Quatrochi’s optimistic outlook for ARM Holdings.
In another report released on April 22, Barclays also maintained a Buy rating on the stock with a $125.00 price target.