10 AI News and Ratings Making Waves on Wall Street

4. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 38

Arm Holdings plc (NASDAQ:ARM) designs and licenses microprocessors, system IPs, and related technologies for semiconductor companies across industries like automotive, consumer tech, and IoT. 

On February 12, TipRanks reported that Sara Russo from Bernstein maintained a Sell rating on ARM Holdings, keeping the price target at $100. Despite ARM’s strong quarterly results exceeding revenue and EPS expectations, concerns remain about its high valuation relative to industry averages. While the company’s long-term prospects in AI and CSS look favorable, a shift toward licensing may lead to a slight royalty revenue decline. Additionally, increased R&D spending could limit short-term margin growth, leading to continued skepticism about its current valuation.