Analysts raise ARM’s stock target following robust growth in data center revenue and expanding AI-driven demand.
Guggenheim increased its price target for ARM Holdings (ARM) after the chip designer reported stronger-than-expected data center growth. The firm cited accelerating adoption of ARM-based processors in cloud infrastructure and AI workloads as key drivers.
ARM’s prior quarter saw data center revenue rise 40% year-over-year, outpacing consensus estimates. The company’s architecture is increasingly favored by hyperscale providers for energy efficiency and performance gains.
Shares of ARM edged higher in pre-market trading following the note, reflecting investor optimism about its long-term positioning in AI and cloud markets.