Arm upgraded to Positive at Susquehanna following underperformance

As previously reported, Susquehanna upgraded Arm (ARM) to Positive from Neutral with an unchanged price target of $150. Recent sell-side competitor downgrades and the significant underperformance of the stock offer “an excellent setup,” the analyst tells investors. Investor worries about the effects of higher memory prices on the mobile and PC markets have pressured shares, but the firm views this selloff “opportunistically” as it contrasts well-known market weakness with the potential of two important, data center-related and significant “company-changing” initiatives, namely the development of an AI XPU ASIC and a custom server CPU.