Loop Capital Raises PT on Arm Holdings (ARM) stock

Arm Holdings plc (NASDAQ:ARM) is one of the best Semiconductor Stocks to Buy Heading into 2026. On November 12, Loop Capital lifted the price target on the company’s stock to $180 from $155, while keeping a “Buy” rating as reported by The Fly. The firm believes that the company’s earnings report was solid. Furthermore, the analyst believes that Arm Holdings plc (NASDAQ:ARM) continues to see design win traction throughout its end markets.

In Q2 2026, the company saw its revenue grow by 34% YoY to $1.14 billion, with royalty revenue increasing 21% YoY to a record of $620 million. Furthermore, its royalty revenue growth stemmed from all the target end markets, which include smartphones, data center, automotive, and IoT, showcasing its momentum.

Arm Holdings plc (NASDAQ:ARM)’s non-GAAP EPS came in at $0.39, $0.06 above the midpoint of its guidance range, thanks to the increased revenue and slightly lower OpEx. Its RPO rose 1% QoQ to $2,246 million, and Arm Holdings plc (NASDAQ:ARM) anticipates recognizing ~29% of RPO as revenue over the upcoming 12 months, 16% over the subsequent 13 to 24 months, and the remainder thereafter.

Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products as well as associated technologies for semiconductor companies 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.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.