20 Trending AI Stocks on Latest News and Analyst Ratings

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. Raymond James recently started coverage of the British company with an Outperform rating and a $160 price target. Analysts at the investment advisory noted that Arm, as the dominant supplier of energy-efficient processor/subsystems IP, was well-positioned to benefit from rapid growth of generative Al in the cloud and at the edge. The analysts expect content increases in mobile along with higher penetration of Arm architecture in auto, data center and PC markets to drive sustainable double-digit growth for the next several years.

According to experts at Raymond James, Edge AI was a key catalyst for Arm Holdings plc (NASDAQ:ARM) and for ARMv9, which offered about 2x royalties over prior generation and had a long runway. The analysts added that there was a good possibility that Arm would eventually offer data center Al accelerator IP, which could significantly expand its serviceable addressable market. Competition from RISC-V — an open-source instruction set architecture — was increasing but was unlikely to threaten Arm’s dominance, according to the analysts.