18 Trending AI Stocks on Latest Analyst Ratings and News

11. 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. Chip stocks in the US have had a rough ride this year. After touching record highs due to the AI spending in the first half of the year, a major selloff in the past few months has resulted in valuations dropping by as much as 40%. However, even though some analysts on Wall Street believe that this downturn could last until after the US election, Bank of America contends that chip stocks, including ARM, may start recovering by as early as October.

In a recent investor note, Bank of America analyst Vivek Arya said that Arm Holdings plc (NASDAQ:ARM) could be one of the outperformers in the event of a resurgence. Arya claims that the semiconductor industry is only in the fourth quarter of an upcycle, with the Philadelphia Semiconductor Index having generated a return of 28% – previous upcycles have lasted 10 quarters and generated an average return of 67% for the index.