16 Trending AI Stocks on Latest Analyst Ratings and News

10. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 38

Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. As the AI wave sweeps the market, investors are finding it hard to find growth firms with a financially sound historical record. Arm Holdings ticks a lot of boxes for AI investors who want solidity. It has a high historical revenue growth rate of 18% and analysts expect this growth to accelerate moving forward to 22% annually. These numbers are supported by strong license and royalty revenue, as well as increasing adoption of the chip architecture of the firm that competes on cost and energy efficiency.

Arm Holdings plc (NASDAQ:ARM) is thus turning heads on Wall Street. Daiwa recently upgraded the stock to Outperform from Neutral with a $130 price target, noting that following a few interesting and volatile quarters, the bad news of a possible recession was out and tech was settling post the big recent selloff, though AI expectations were still strong. The analyst expected Arm shares to trend further upwards in the next few months.