Why One Wall Street Analyst Is Growing More Bullish This Nvidia Partner's Stock
Key Takeaways
- Arm shares climbed Monday as Wells Fargo raised its price target for the chip designer’s stock.
- Wells Fargo pointed to the company’s “expanding AI opportunities” as a key driver of revenue growth.
- Arm is scheduled to report quarterly earnings after the market closes on July 30.
Arm (ARM) shares climbed Monday as analysts at Wells Fargo raised their price target for the chip designer’s stock ahead of quarterly earnings due next week.
The analysts raised their target to $175 from $145, well above the mean of analysts tracked by Visible Alpha, which sits at about $143. Shares of Arm rose over 3% to close near $162 Monday, and have added roughly a third of their value in 2025.
Arm, which develops CPU designs used in chips from companies like Nvidia (NVDA), Microsoft (MSFT) and Alphabet’s (GOOGL) Google, could be well-positioned to benefit from “expanding AI opportunities,” including growing data center demand, Wells Fargo told clients in a note Sunday.
“We continue to estimate strong growth for Arm’s royalties business despite tariff-related uncertainty,” Wells Fargo said, adding that Arm’s ramp of AI and custom silicon designs could “drive meaningful royalty revenue growth” this fiscal year.
Arm is scheduled to report fiscal first-quarter earnings after the market closes on July 30.