With significant hedge fund interest, Arm Holdings Plc (NASDAQ:
ARM) secures a spot on our list of the
11 best AI infrastructure stocks to buy right now.
Source: Pixabay
On November 12, 2025,
The Fly reported that Loop Capital increased its price target on Arm Holdings Plc (NASDAQ:ARM) from $155 to $180, while reiterating a “Buy” rating. The investment firm’s bullish stance stemmed from the company’s quarterly beat reported in its fiscal Q2 results.
Additionally, on November 7, 2025,
The Fly reported that Morgan Stanley increased its price target on Arm Holdings Plc (NASDAQ:ARM) from $171 to $180, while maintaining an “Overweight” rating. The firm attributed its raised target to the company’s Q2 earnings and sales, both of which exceeded the upper end of its guidance. Furthermore, the investment firm highlighted the company’s expanding role in the accelerating AI ecosystem, evident from its increased operating expenses.
Meanwhile, on November 5, Arm Holdings Plc (NASDAQ:ARM) reported fiscal Q2 2025 results, noting record revenue of $1.14 billion, a year-over-year increase of 34%. Meanwhile, non-GAAP EPS came in at $0.39, surpassing the midpoint of guidance. The company reported $620 million in royalty revenue with a 21% growth. Thanks to strong demand for next-generation AI chips, licensing grew 56% to $515 million. The quarter also marked heightened R&D spending, growing operating expenses 31% to $648 million, driven by new chiplet and data center projects.
Looking ahead, Arm Holdings Plc (NASDAQ:ARM)’s partnership with Meta, announced during October, is expected to enhance its AI efficiency, while its agreed acquisition of DreamBig Semiconductor is expected to expand its networking IP footprint.
Operating across data center, smartphone, and IoT markets, Arm Holdings Plc (NASDAQ:ARM) designs, develops, and licenses CPU and semiconductor IP to global chipmakers and OEMs.
While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the
best short-term AI stock.
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Disclosure: None.
