Loop Capital sees more room for Arm Holdings to run after its latest earnings report. Analyst Ananda Baruah hiked his price target by on the chipmaker by $15 to $195, which now suggests 20% upside. Baruah also reiterated his buy rating. Arm exceeded analyst expectations on both the top and bottom line for the fiscal third quarter when posting results last week. Despite that beat, the company provided guidance that was in line with Wall Street estimates. “ARM generated very solid Dec Q revenue and EPS upside,” Baruah wrote to clients, using the acronym for earnings per share. “While the in-line Mar Q guidance put a lid on the stock we anticipate ARM to have a very bullish FY2026 (Mar Q) narrative in April on it’s Mar Q EPS call.” Baruah pointed out that artificial intelligence boosted demand for the company’s compute systems across all end markets. Notably, Arm said it has several major deals planned for the March quarter, driven by AI and compute subsystems. To be sure, he noted risks tied to his outlook from fluctuations in customer consumption or any weakness in key markets. Geopolitics and an ongoing lawsuit with Qualcomm can also be an overhang for the U.K-based company, he added. Arm went on to finish last week higher by nearly 2%, but slipped close to 1% in Monday’s premarket. Shares of the chip design company, which went public in 2023, have surged more than 31% so far this year. ARM YTD mountain Arm in 2025 Most analysts are bullish on Arm shares. According to LSEG, 22 of 38 analysts covering the stock rate it as a buy or a strong buy. Another 13 have a hold rating on the stock.
