15 Best New Tech Stocks To Invest In

3. Arm Holdings (NASDAQ:ARM)

Market Capitalization as of January 21: $156.87 billion

Number of Hedge Fund Holders: 38

Arm Holdings (NASDAQ:ARM) is a technology company that designs and licenses the blueprints for processors that are found in billions of devices worldwide. These include everything ranging from smartphones and tablets to cars and the Internet of Things.

Armv9 is the latest generation of the company’s processor architecture. It is designed to power the next wave of AI-driven devices. Armv9 is the primary driver of the company’s growth and commands about double the royalty rate of its predecessor, Armv8. It contributes around 25% of Arm Holdings’ (NASDAQ:ARM) total royalty revenue. In the mobile segment, Armv9-based chips have fueled a 50% year-over-year increase in smartphone royalty revenue in FQ1 2025. In data centers and automotive applications, the adoption of Armv9-based server chips is driven by superior performance-per-watt. This contributes to revenue growth in the cloud computing sector.

Susquehanna raised its price target on Arm Holdings (NASDAQ:ARM) to $140 from $118 while maintaining a Neutral rating. The firm updated its semiconductor models to reflect 2025 wafer fab equipment spending of $94 billion, which was down 6% year-over-year while forecasting 6% growth in 2026. Still, Susquehanna expects increased test time and end-market demand diversification to support the company’s growth.