10 AI News Updates Making Waves on Wall Street

3. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 38

Arm Holdings plc (NASDAQ:ARM) develops and licenses semiconductor technologies, including microprocessors and system IPs, for different industries like automotive, computing, and IoT.

On February 6, UBS reiterated its Buy rating on Arm with a price target of $215, after strong December quarter results. The March quarter guidance aligns with UBS and consensus estimates. The main positives include AWS Graviton processors exceeding 50% market share, improved networking equipment sales, and accelerating demand for Compute Subsystems, which are now contributing to smartphone royalty growth. Arm is also set to benefit from the rise in custom ASICs for hyperscalers and continues to invest in growth, with AI driving expansion in major markets, especially in data centers and smartphones.