35 AI Superstars According to Goldman Sachs

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33. 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. Rene Haas, the CEO of Arm Holdings plc (NASDAQ:ARM), said during the first quarter earnings call that companies everywhere were investing in AI, driving revenue and bookings for his firm which posted a fourth consecutive quarter of record earnings, growing revenue by 39% year-on-year. License revenue during the period was up 70% year-on-year while royalty revenue was up 17% year-on-year.

Morgan Stanley analyst Lee Simpson recently maintained an Overweight rating on Arm Holdings plc (NASDAQ:ARM) stock with a price target of $175. In an investor note, the analyst underlined that the iPhone 16 release suggested the utilization of an Arm-based A-series processor, the A18, in the device. Arm remained a favored play on the emerging Edge AI opportunity, added the analyst, who expected mobile to drive initial upside, followed by infrastructure and autos.

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