Arm Holdings (ARM) Stock: Analysts See Nvidia-Like Strategy Taking Shape

Arm Holdings plc (NASDAQ:ARM) is one of the AI Stocks in the Spotlight for Investors. On September 11, Evercore ISI analyst Mark Lipacis raised the price target on the stock to $178.00 (from $173.00) while maintaining an Outperform rating. The rating affirmation follows meetings between the firm and ARM’s CEO, CFO, and VP of IR.

Analysts came away positive from the meeting stating that ARM has the potential to move from simply exploring to executing a strategy that will allow it to expand its platform into subsystems, chiplets, and full-end solutions.

This would allow Arm’s model to become similar to Nvidia, positioning it as the CPU-ecosystem of choice.

“Last week we met with ARM’s CEO Rene Haas, CFO Jason Child, and VP of IR Jeff Kvaal, and left our meeting thinking that it is a high probability that company will shift from “exploring the possibility” of expanding its platform into subsystems, chiplets and full-end solutions to actually executing on it. This strategy would shift Arm’s model to look more like Nvidia’s, but as the CPU-ecosystem of choice providing the processors, libraries, integration know-how as well as physical ICs into a broad set of end markets. If it does, we calculate a bear/base/bull 2030 EPS power of $5/$8/$13. Raise PT to $178, Reiterate OP. “

Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products.

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