Arm Holdings’ Stock Soars as Loop Capital Raises Price Target to $180 Despite Softening Guidance
Arm Holdings Plc Secures Spot Among Top AI Infrastructure Stocks to Buy Right Now
With significant hedge fund interest, Arm Holdings Plc (NASDAQ:ARM) has earned a spot on our list of the best AI infrastructure stocks to buy right now.
On November 12, 2025, The Fly reported that Loop Capital raised 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.
The Loop Capital analysts identified several factors contributing to their increased confidence in Arm Holdings’ growth prospects. Firstly, they noted that the company had exceeded expectations in both revenue and non-GAAP EPS, with a 34% year-over-year increase in revenue to a record $1.14 billion. Additionally, the company’s royalty revenue grew by 21%, while licensing revenues saw a significant surge of 56% to $515 million.
Furthermore, Loop Capital highlighted the company’s increasing role in the accelerating AI ecosystem, evident from its expanding operating expenses due to new chiplet and data center projects. As a result, Arm Holdings’ operating expenses grew 31% to $648 million during the period.
Morgan Stanley also 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. Morgan Stanley analysts pointed out that Arm Holdings’ ability to navigate the expanding AI ecosystem with ease was a major contributing factor to their optimistic outlook.
Meanwhile, on November 5, Arm Holdings Plc (NASDAQ:ARM) reported fiscal Q2 2025 results, noting record revenue of $1.14 billion, exceeding even their upper-end guidance. Non-GAAP EPS also came in at $0.39, surpassing the midpoint of guidance. The company reported $620 million in royalty revenue with a notable 21% growth.
Arm Holdings’ licensing business continued to thrive due to the growing demand for next-generation AI chips. During Q2, the firm’s licensing segment experienced an impressive 56% year-over-year increase, reaching $515 million.
It is worth noting that Arm Holdings Plc (NASDAQ:ARM) operates in multiple markets such as data center, smartphone, and IoT. The company designs, develops, and licenses CPU and semiconductor IP to global chipmakers and OEMs.
However, while we acknowledge the potential of ARM as an investment opportunity, certain AI stocks are believed to offer greater upside potential with less downside risk at the present time.
Looking ahead, Arm Holdings Plc (NASDAQ:ARM)’s partnership with Meta announced during October is expected to boost its AI efficiency. Additionally, their agreed acquisition of DreamBig Semiconductor is poised to expand its networking IP footprint.
Investment Strategy
While we recognize the value proposition presented by Arm Holdings Plc (NASDAQ:ARM), we would like to emphasize that certain other AI stocks may offer even higher growth potential and require less caution on behalf of investors.
As we have identified in our research report, there is one specific short-term AI stock standing out for significant upside opportunities. This investment prospect can also capitalize on the Trump-era tariffs benefits as well as conform to emerging onshoring requirements.
Investors seeking a highly undervalued opportunity that aligns with industry developments and holds strategic long-term value will find our comprehensive research report indispensable.
Conclusion
Arm Holdings Plc (NASDAQ:ARM) remains an attractive investment prospect for traders focusing on AI infrastructure growth drivers. Recent positive trends reported by Loop Capital and Morgan Stanley further confirm the company’s impressive momentum in navigating technological developments related to chip manufacturing and data centers.
As Arm Holdings continues to assert its presence across diverse markets such as data center, smartphone, and IoT, it’s essential for market observers to consider its growth trajectory within these expanding sectors.
Therefore we recommend traders with a specific investment strategy focusing on AI infrastructure development to include ARM amongst their targeted portfolio assets while continuing to monitor emerging market dynamics.
Arm Holdings’ Stock Soars as Loop Capital Raises Price Target to $180 Despite Softening Guidance
Arm Holdings Plc Secures Spot Among Top AI Infrastructure Stocks to Buy Right Now
With significant hedge fund interest, Arm Holdings Plc (NASDAQ:ARM) has earned a spot on our list of the best AI infrastructure stocks to buy right now.
On November 12, 2025, The Fly reported that Loop Capital raised 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.
The Loop Capital analysts identified several factors contributing to their increased confidence in Arm Holdings’ growth prospects. Firstly, they noted that the company had exceeded expectations in both revenue and non-GAAP EPS, with a 34% year-over-year increase in revenue to a record $1.14 billion. Additionally, the company’s royalty revenue grew by 21%, while licensing revenues saw a significant surge of 56% to $515 million.
Furthermore, Loop Capital highlighted the company’s increasing role in the accelerating AI ecosystem, evident from its expanding operating expenses due to new chiplet and data center projects. As a result, Arm Holdings’ operating expenses grew 31% to $648 million during the period.
Morgan Stanley also 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. Morgan Stanley analysts pointed out that Arm Holdings’ ability to navigate the expanding AI ecosystem with ease was a major contributing factor to their optimistic outlook.
Meanwhile, on November 5, Arm Holdings Plc (NASDAQ:ARM) reported fiscal Q2 2025 results, noting record revenue of $1.14 billion, exceeding even their upper-end guidance. Non-GAAP EPS also came in at $0.39, surpassing the midpoint of guidance. The company reported $620 million in royalty revenue with a notable 21% growth.
Arm Holdings’ licensing business continued to thrive due to the growing demand for next-generation AI chips. During Q2, the firm’s licensing segment experienced an impressive 56% year-over-year increase, reaching $515 million.
It is worth noting that Arm Holdings Plc (NASDAQ:ARM) operates in multiple markets such as data center, smartphone, and IoT. The company designs, develops, and licenses CPU and semiconductor IP to global chipmakers and OEMs.
However, while we acknowledge the potential of ARM as an investment opportunity, certain AI stocks are believed to offer greater upside potential with less downside risk at the present time.
Looking ahead, Arm Holdings Plc (NASDAQ:ARM)’s partnership with Meta announced during October is expected to boost its AI efficiency. Additionally, their agreed acquisition of DreamBig Semiconductor is poised to expand its networking IP footprint.
Investment Strategy
While we recognize the value proposition presented by Arm Holdings Plc (NASDAQ:ARM), we would like to emphasize that certain other AI stocks may offer even higher growth potential and require less caution on behalf of investors.
As we have identified in our research report, there is one specific short-term AI stock standing out for significant upside opportunities. This investment prospect can also capitalize on the Trump-era tariffs benefits as well as conform to emerging onshoring requirements.
Investors seeking a highly undervalued opportunity that aligns with industry developments and holds strategic long-term value will find our comprehensive research report indispensable.
Conclusion
Arm Holdings Plc (NASDAQ:ARM) remains an attractive investment prospect for traders focusing on AI infrastructure growth drivers. Recent positive trends reported by Loop Capital and Morgan Stanley further confirm the company’s impressive momentum in navigating technological developments related to chip manufacturing and data centers.
As Arm Holdings continues to assert its presence across diverse markets such as data center, smartphone, and IoT, it’s essential for market observers to consider its growth trajectory within these expanding sectors.
Therefore we recommend traders with a specific investment strategy focusing on AI infrastructure development to include ARM amongst their targeted portfolio assets while continuing to monitor emerging market dynamics.