Shares of Arm Holdings (NASDAQ: ARM) climbed sharply higher on Thursday, rising as much as 8.7%.
ET, the stock was still up 6%. The catalyst that drove the semiconductor specialist higher was an aggressive price target increase and bullish commentary from a Wall Street analyst. Long-term tailwinds Bank of America analyst Vivek Arya maintained a neutral (hold) rating on Arm Holdings and raised his price target to $335 from $245 — so the analyst was clearly playing catch-up.
That represents potential gains for investors of 9% compared to Wednesday’s closing price. The analyst raised his outlook for the global CPU market to $170 billion over the next five years, up from $125 billion, suggesting 37% compound annual growth by the end of the decade. Arm is the leading supplier of CPU design and architecture, so this forecast is a positive development for the company.