As previously reported, HSBC analyst Frank Lee double upgraded Arm (ARM) to Buy from Reduce with a price target of $205, up from $90, arguing that the company’s transition from being a smartphone dependent semiIP play to a “major” AI server CPU beneficiary is “still being undervalued by the market.” All major hyperscalers have Arm-based server CPUs and are moving to both its v9 architecture as well as Neoverse Compute Subsystems, doubling its royalty revenue per chip, the analyst tells investors.
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